Positive News From EUR/USD’s Weakness

Wall Street’s recent meltdown has much to do with worries that the stronger dollar and Europe’s economic slowdown could hurt corporate America, as investors look to next week, when the third-quarter earnings season begins in earnest.

But the dollar’s strength against the euro could be among the few positive factors at play for Europe, given the region’s weaker currency should boost its exports, just as the softer dollar helped boost portions of the U.S. economy when it was mired in recession.

“With the weaker euro, there should be some stabilization with exports from Europe; like the U.S. with a weaker dollar coming out of the recovery, it helped our growth and got us back on track to some degree. So from a timing perspective, it’s a good thing for European companies,” said James Liu, global market strategist at J.P. Morgan Funds.

CNBC

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