The Focus Of Economic Growth In The Euro Area Began To Change.

The European Central Bank's negative interest rate and QE policy failed to suppress the euro exchange rate. The prevailing view is that the central bank's monetary policy has failed.

However, Credit Suisse believes that the ECB will not be overly concerned about the strong euro, because the focus of the euro zone's economic growth has shifted from external to internal.

Credit Suisse First pointed out that one of the purposes of the ECB's monetary policy is to depress the euro, which may be outdated. This is evident from the European Central Bank's March interest rate resolution and the trend of the euro after the launch of the Fed chairman Yellen. The ECB is adopting a more neutral attitude towards the euro's trade weighted index. They are unwilling to see a similar 2014-15 year rally in the euro.

According to Credit Suisse, Europe

The focus of the recent policy is shifting from the exchange rate to supporting the internal financial environment of the eurozone, and the performance of the euro area economy also allows the ECB to tolerate a relatively strong euro.

For Europe, the weaker euro is no longer a necessary condition for economic recovery.

Although the depreciation of the euro in the early 2014 and early 2015 did bring the boost of exports, the stimulus effect had weakened.

Over the past 18 months, Global trade has been extremely vulnerable, and at the same time,

The export performance is relatively good.

At this stage, the euro did not show signs of devaluation.

Credit Suisse also said that it maintained growth in the euro area's internal demand.

No matter the export situation has improved or deteriorated.

The final conclusion of Credit Suisse is that under the condition of stable internal demand, the employment function and significance of domestic demand driven employment is greater than that of export oriented employment, while employment growth can offset the pressure of real family income caused by high inflation.

The positive cycle of self-sufficiency means that the euro zone economy is on the right track.