Papasavvas: Three reasons 2011 is the year of the euro

DEMAND FOR EURO WILL RETURN

Thanos Papasavvas, head of currency management at Investec Asset Management, explains why, contrary to popular belief, 2011 could be the year of the euro.

Contrary to market consensus, the Investec currency management team believes the single currency will neither break up nor have any member states departing. Having called the euro weakness in the early part of last year following the headwinds of fiscal austerity, we now believe the worst is behind the eurozone, both economically and politically. Given these moves, as a result, we believe the euro will find its footing this year and we expect to see a gradual shift in assets back to the single currency out of peripheral Europe and Switzerland. We also expect to see demand once again for ...