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Euro area growth to move higher – Goldman Sachs

FXStreet (Barcelona) - The Goldman Sachs Team expects improvement in domestic demand to lead Euro area growth to climb higher, forecasting 2015 growth at 1.5% and 2016 at 1.7%.

Key Quotes

“For the Euro area as a whole, we forecast growth of 1.5% in 2015 and 1.7% in 2016. The growth outlook at the country level still shows divergent trajectories, with growth below 1% in Italy, but somewhat above that threshold in Germany and Spain.”

“We forecast Euro area growth to move higher, driven by modest improvements across all major components of domestic demand. Support from monetary policy will also contribute to that recovery. Still, the list of necessary adjustments in the periphery remains long, ranging from cleaning up the banking system and labour market reform to increasing competitiveness.”

US dollar peg to remain – HK chief executive

Hong Kong chief executive Leung Chun-ying said on Monday that the policy of pegging the Hong Kong dollar to the US dollar has been operating well and he was not going to change it.
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US GDP forecasts continue to move lower – SG

Kit Juckes of Societe Generale, notes that US GDP forecasts for 2015 and 2016 continue to move lower and the Q1 GDP release ahead will match the downside trend, while Fed fund futures continue to climb higher.
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