The Euro was treading water Thursday after French industrial production aggravated earlier concerns about the health of the Eurozone economy, which have led some economists to forecast the European Central Bank will now not get the chance to raise its interest rate in this cycle.
The Euro-to-Dollar rate is continuing to draw buyers out of the woodwork even in the face of mounting concerns over the bloc's economy, with some suggesting the exchange rate could return to levels last seen in the summer of 2018 over the coming weeks.
The Euro underperformed rivals Tuesday after official data revealed a second consecutive contraction in German industrial production took place in November, all but ruling out a rebound from weakness seen in the third-quarter and prompting one economist to warn of a "technical recession".
If the Euro ever meets its end, it will probably be swiftly, and at the behest of Germany, says Yanis Varoufakis, the economist and former finance minister of Greece who explains the Euro effecitvely facilities the draining of money out of 'periphery' Europe and into safe-haven German banks as a guard against a potential redenomination.
The Euro could face downside risks in the middle of 2019 and potentially even another existential crisis if the outcome of European elections impact the fiscal and monetary relationship between Germany and Italy.