The Euro in 2000

Europe's single currency faces a brighter year 2000, analysts say. The euro brief ly fell through parity against the US dollar in late November-a great psychological blow-but analysts say the downside is limited. European growth in 1999 had not been as strong as many expected, putting considerable pressure on the single currency. Now euro zone economies are strengthening across the board. And for the first time since 1992 employment growth in the 11 countries of the European Monetary Union is faster than in the United States. The euro's recent weakness can largely be blamed on position squaring before the end of last year rather than any economic fundamentals.A lack of liquidity in the market also exaggerated its movements.