UBS Flags Prospect of EU Defense Unity Lifting Euro as a Reserve
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The euro stands ready to benefit from any reassessment of reserve currencies by the world’s central banks as Europe grows more united over the need to fund its own defense, according to analysts at UBS Investment Bank, a unit of UBS Group AG.
The currency, which is on its best four-day tear since 2015, has rallied in the wake of a weekend agreement by EU and UK leaders in London to increase military spending, with these gains augmented when Germany announced an unprecedented defense investment.