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11 Feb 2013
Forex Flash: EU FinMin meet serves as warm up for G20 – BBH
Brown Brothers Harriman analysts feel that the Euro zone Finance Ministers meet Monday in Brussels is a warm up for the G20 later in the week, so there is potential for some tape bombs for most of the week.
They note that 27 EU Finance ministers will meet on Tuesday in Brussels and while the ECB has remained quite circumspect when asked about the strong Euro, it is quite possible that government officials may be more vocal in their complaints, especially when looking at how far the Euro has moved against the Yen.
They write, “As we noted in a report last week, Germany has an export structure that is very close to that of Japan’s, and so the rise in EUR/JPY has significant implications for German exports. However, we also know that France, Austria, Italy, and Spain are all in the top 10 in terms of similarity to Japan’s export structure, and so much of the Eurozone is likely to feel the pinch of the stronger Euro.”
They note that 27 EU Finance ministers will meet on Tuesday in Brussels and while the ECB has remained quite circumspect when asked about the strong Euro, it is quite possible that government officials may be more vocal in their complaints, especially when looking at how far the Euro has moved against the Yen.
They write, “As we noted in a report last week, Germany has an export structure that is very close to that of Japan’s, and so the rise in EUR/JPY has significant implications for German exports. However, we also know that France, Austria, Italy, and Spain are all in the top 10 in terms of similarity to Japan’s export structure, and so much of the Eurozone is likely to feel the pinch of the stronger Euro.”