Euro's Fair Value May Be `Closer to $1.35,' Morgan Stanley Says

The video discusses the factors influencing the euro and pound, highlighting the euro's recent impact due to trade concerns and US growth. It explores the euro's long-term potential, considering its current account surplus and fiscal improvements. The discussion includes the euro's effect on German trade surplus and the fair value of the euro against the dollar, as analyzed by an FX strategy team.

What recent factor has contributed to the euro's weakening?

• Increased tourism in Europe

• Trade concerns

• Political stability in the eurozone

• Rising oil prices

Which currency is mentioned as having stronger growth compared to the eurozone in the second quarter?

• Swiss Franc

• British Pound

• Japanese Yen

• US Dollar

What is one reason for a positive long-term outlook on the euro?

• Large current account surplus

• Decreasing population

• High inflation rates

• Political instability

What is the estimated fair value of the euro against the dollar according to the FX strategy team?

• 1.35

• 1.10

• 1.50

• 1.20

What economic measure is used to argue for the euro's fair value?

• Inflation rate

• Purchasing power parity

• Unemployment rate

• Interest rate