In regard to the anticipated currency movements related to the Spanish packaging company investment, Fournier told Testa that HNW was forecasting that the euro was likely to appreciate against the US dollar in the next six months.
Testa agreed with HNW’s assessment of the future course of the USD/EUR exchange rate. His conclusion was derived from assessing various analysts’ reports and was centered on the following three reasons:
- real interest rates were higher in euro-based countries,
- the potential default of several euro-based countries from their excessive debt loads would lead to strong support measures from the IMF and the European Central Bank, and
- the US balance of trade deficit with euro-based countries had continued to decline in the past several years and was expected to continue to decline.
Q. Which of Testa’s reasons for the future course of the USD/EUR exchange rate in 2009 is mostconsistent with HNW’s assessment?
- Reason 1
- Reason 2
- Reason 3
想问下reason1 什么期间内利率高的货币升值，多长算long term，long term 是不是认为利率高的货币贬值？
