Swiss Global Asset Manager Corbach Says Don’t Count on a Continued Rally in the Euro

“The euro has been on a rampage in recent weeks, soaring to a 14-month high against the dollar amid a calming of Europe’s financial crisis.

But many market participants think the move will soon run out of steam.

“I could imagine another 2 to 3 percent for the euro, but I don’t expect a continuous rally,” Joe Corbach, head of currencies at Swiss Global Asset Management, tells The Wall Street Journal.

“We do not expect the euro to go beyond $1.40.”

The euro stood at $1.3554 early Monday, up from about $1.32 a year ago

The European Central Bank (ECB)’s quantitative easing that began last summer has played a big role in quelling the financial crisis and drawing investors to the euro. And while other central banks have stepped up their easing, the ECB has begun to reverse its own, according to The Journal.

But the currency’s strength means trouble for the continent’s exporters, so the ECB may feel pressure to act to halt the euro’s rise….”

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