JPMorgan's Normand Sees Euro at $1.24 by End of Year

The transcript discusses differing market predictions from Deutsche Bank and RBC Capital Markets, with JP Morgan's year-end target at 124. It highlights the potential for interest rates to rise in Europe, driven by early monetary policy adjustments, and the euro's performance despite the Fed's tightening. The conversation also explores the impact of a stronger euro on European exports and the ECB's policy decisions, suggesting that a 5-10% increase in the euro's trade-weighted value could affect exporters but not the entire region due to domestic growth sources.

What was the year-end target for the euro set by JP Morgan?

• 110

• 115

• 124

• 130

Why was there skepticism about the euro forecast despite the Fed's actions?

• Because the euro was expected to fall

• Due to the euro's decline

• Due to the Fed's rate hikes and euro's rise

• Because the euro was stable

What was the reason for the potential rate increases in Europe?

• Late cycle region

• Stable economic conditions

• Early cycle region

• High inflation

What could be a consequence of the euro being 5-10% higher in trade-weighted terms?

• Boost in domestic growth

• No impact on exports

• Increased exports

• Problems for exporters

What might the ECB consider if the euro appreciates significantly?

• Reducing interest rates

• Increasing QE

• Delaying rate policy changes

• Accelerating rate hikes