Happy Christmas, the War Is Over, at Least for Draghi and Euro

Analysts at HSBC Holdings Plc, Banco Santander SA and National Australia Bank Ltd. predict muted declines or even gains in the shared currency versus the dollar in 2016. The median forecast in a Bloomberg survey is for a drop of about 4 percent.

A combination of ECB quantitative easing and higher Federal Reserve interest rates will help the single currency hold onto its declines, the strategists say, while the latest data on jobs, manufacturing and inflation show the weaker euro is already starting to benefit the economy. The currency has given up some of its gains since Dec. 3, when the reboot of Draghi‘s bond-buying plan fell short of investors‘ expectations.