In the view of analysts at Goldman Sachs, the common currency will continue to lag amid weakening domestic economic outlook.
Key Quotes:
“February flash PMls a mixed picture for Euro area growth.
Domestic activity seems to be holding up (robust services sector in Germany, recovery in France despite ongoing protests).
Soft demand from China & continued weakness in German auto sector increasingly weighed on industrial sector.
Euro will likely continue to struggle to outperform as long as the outlook for domestic (and China) growth remains in question.
Our economists expect the economy to regain some momentum beyond Q1 “¦ pickup to above-trend growth in the second half of 2019.”
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