Euro: Vulnerable as US diesel policy bites – Societe Generale
Kit Juckes at Societe Generale highlights that a proposed US diesel export ban would likely push up European diesel prices and weigh on the Euro and other European currencies. He points to rising bond yields and Oil prices as additional headwinds and questions whether consensus Eurozone growth forecasts will be revised lower if these pressures persist.
Societe Generale's Kit Juckes warns that a proposed US diesel export ban could lead to higher European diesel prices, negatively impacting the Euro and other European currencies. Rising bond yields and oil prices present additional challenges, raising questions about the Eurozone's growth forecasts. While the policy may push diesel prices up in Europe, it's unlikely to significantly affect the US economy.
The US dollar, however, stands to benefit from the policy. Despite a global energy crisis, it's difficult to envision the US slowing down its growth before Europe does. Eurozone growth forecasts may be revised downward if bond yields and oil prices persistently rise.
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