Negative rates in the EZ implementing (additional) fiscal drag there that is requiring the EZ multinational firms to lower their prices in the US export market in USD terms in an effort to boost external sales:
Which one comes first... EURUSD parity or German 10-year yielding 0%. pic.twitter.com/wN2dtL78KA
— Jonathan Ferro (@FerroTV) April 15, 2015
EUR/USD seems to be bobbing around 1.07
The only macro-factor I can see on the horizon is a potential for elimination of the Russian sanctions in the June time frame which may help EZ exporters ability to raise/hold prices if that occurs. Although oil prices will be a lot lower than the environment before the sanctions were imposed so that may temper any recovery in exports there.
Fiscal policy in the US market is at best about a "breakeven" YoY and anecdotal evidence from the EZ implies a similar fiscal outlook there. Fiscal looks like it will remain status quo in both of these national markets for the rest of the year at this point so no help for the EZ multi-nationals there.
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