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Why is Stronger EUR Not Hurting German Companies?

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It sounds odd for German companies to be in a “euphoric” mood while the euro has been on a tear higher, but there are solid factors behind that uplifted frame of mind, analysts say.

Concerns that a stronger euro will hurt big exporters in Europe’s largest economy have been reflected in the DAX 30 DAX, -0.90% The German stock benchmark slumped 1.7% last month, helping to drive down its year-to-date gain to about 6%.

However, “there are fundamental reasons why German industry is not too worried about the strengthening of the euro,” said Carsten Brzeski, chief economist at ING.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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