JPMorgan Chase global research director: European stimulus plan will boost the euro

Joyce Chang, Head of Global Research at J.P. Morgan, stated that the euro is expected to continue strengthening this year due to the boost from European spending plans. This Wall Street bank predicts that as the European economy grows faster than the United States, the euro/dollar exchange rate will rise to 1.20 by December and reach 1.22 by June next year. Chang also added that a potential ceasefire in Ukraine could also support the euro. As part of a significant increase in military spending by the government, Germany plans to increase core defense spending to 3.5% of GDP within the next five years. They have also initiated a 500 billion debt-financed infrastructure investment plan to stimulate the stagnant economy.