David Kohl, chief currency strategist and head economist Germany at Julius Baer, said eurozone’s indicators were pointing to an ongoing solid growth outlook.
Julius Baer has slightly risen its eurozone GDP outlook for 2016 to 1.7% from 1.6%, and to 1.6% for 2017 from 1.3%.
“Good forward-looking indicators and ongoing credit activity are suggesting that growth will remain at current levels in the coming quarters and not slow as the tailwind from a weaker euro becomes weaker. The result is less pressure on the European Central Bank to weaken the currency,” Kohl added.
Kohl said growth in the eurozone was “far from stellar” but is still ongoing at a moderate pace despite a stronger euro in the past few months.
Julius Baer has raised our growth and exchange rate forecasts up.