What European CFOs Are Saying About Threat of a Strong Euro
- Adidas has hedged currency risk for the next 18 months
- Merck says second half “will not be a walk in the park”
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Europe’s soaring currency, a source of headache for its stock market, has also been a recurring theme for the region’s executives in the latest earnings season.
A 12 percent rally in the euro this year is pushing it toward levels that market-watchers predict will be painful for profits in the region, particularly for exporters who have to both translate their overseas sales back from less valuable currencies, and face competition from cheaper products abroad. The concern has helped drag the Euro Stoxx 50 Index down 5.2 percent since a May peak.