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According to Robin Brooks, Chief Economist at the Institute of International Finance (IIF) and former Chief FX Strategist, markets are zeroing in on the US leading the Eurozone in recovery from the coronavirus-induced recession at Goldman Sachs. 

That’s evident from the latest divergence in the Eurozone and US inflation expectations. 

While the 5y5y forward inflation swaps have gained nearly 16 basis points since late September, the Eurozone swaps have remained sidelined, as seen below.