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One reason for the better performance among smaller countries is the liquidity added to the market by the likes of the European Central Bank and the Bank of Japan . Those moves have boosted risk appetite, and to the extent they have stabilized the global economy, they have arguably improved the economic prospects for the smaller countries in the G20 - and their currencies.
Englander cautions that trading this view is expressing a clear belief that risk-on assets will outperform, and he also warns that it's prudent to buy a basket of G20 currencies to limit your exposure to risks like single-country monetary policy moves. But if he's right, you could have a nice ride - and you could let that euro obsession go.
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