Global Foreign Exchange Special Report FX Spot Euroglut here to stay: trillions of outflows to go Robin Winkler • Last year we introduced the Euroglut concept: the idea that the Euro-area's Strategist huge current account surplus reflects a very large pool of excess savings that will have a major

the world, and evidence over the last few months supports these trends: most European outflows have gone to the US. UK and Canada. Finally, we see Euroglut as continuing to constrain monetary policy across the European continent for the foreseeable future. Since our paper in September central banks in

market would be too small to price this Immense shift in Europe's economy ex ante even if participants fully understood the massive implications of Euroglut. Ultimately, portfoko outflows are ikely to exceed the euro area's current account surplus even under extremely conservative assumptions as to the