Goldman Sachs weigh the positives and negatives for the euro:
In brief (bolding mine):
- February flash PMls a mixed picture for Euro area growth
positives:
- domestic activity seems to be holding up (robust services sector in Germany, recovery in France despite ongoing protests)
negatives:
- soft demand from China & continued weakness in German auto sector increasingly weighed on industrial sector
On the currency:
- Euro will likely continue to struggle to outperform as long as the outlook for domestic (and China) growth remains in question.
- our economists expect the economy to regain some momentum beyond Q1 … pickup to above-trend growth in the second half of 2019
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