Thursday Jan. 25 marks the first European Central Bank news conference of the year, and all eyes are on ECB President Mario Draghi's statements about the end of the central bank's bond purchases.
In the meanwhile, another type of tightening has been taking place, this one driven by market forces: the euro has appreciated by 15.3% versus the dollar year on year.
With the Federal Reserve tightening monetary policy, this trend would be surprising were it not for remarks by President Trump, who has said several times that the U.S. dollar is too strong.
Treasury Secretary Steven Mnuchin supports President Trump's view. He reiterated in Davos, Switzerland on Wednesday that a weaker dollar is good for America, "as it relates to trade and opportunities."
In different times, the euro's strength would be worrying for the ECB and for European politicians. However, these are good times for the eurozone economy, so good that the euro area started the year with the fastest growth in almost 12 years and the largest payroll gain since 2000.
This means the single European currency area is less reliant on exports than usual for its growth. Domestic sectors are likely to be winners this year, unless a major geopolitical event or market turbulence derail the eurozone's growth.
European stock markets opened in the red on Thursday, but this could be an opportunity for investors to look for stocks to buy. The consumer sector is a good place to start looking, because consumer stocks benefit when the domestic currency is strong.
Automobile companies dominate a list of consumer stocks that strategists at Société Générale recommend for a strong euro. Europe's largest car manufacturer, Germany's Volkswagen (VLKAY) , is on the list. With the emissions scandal now behind it, the company has seen its Germany-listed stock advance by 10.6% year to date.
Volkswagen offered a 6% total shareholder return over the past 12 months, and derives 43% of its sales from the eurozone.
Next are two French carmakers: PSA Group (PEUGF) -- owner of Peugeot, Citroën, Opel and Vauxhall brands -- and Renault (RNLSY) . Year to date, Peugeot's Paris-listed stock has advanced by 9.5% and Renault's by 7.7%.
Peugeot, which gets 56% of its sales from the eurozone, returned 29% to shareholders over the past 12 months, and Renault, with 53% exposure of sales to the eurozone, returned 13%.
Among the big airlines, the strategists recommend Air France-KLM (AFRAF) , with 59% of its sales coming from the eurozone, low-cost Irish carrier Ryanair (RYAAY) , with 57%, and Germany's Lufthansa (DLAKY) , with 46% of sales derived from the single European currency area.
Smaller low-cost carrier WizzAir (WZZAF) is also among their stocks to buy, with 65% of its revenues coming from the euro area.
In the fashion sector, Spanish clothing and specialty retailer Inditex (IDEXY) , the owner of the Zara, Pull&Bear, Massimo Dutti, Bershka and Stradivarius brands, is on their list of recommendations. It returned 44% to shareholders in the past year, and has 46% exposure to the eurozone.
These are just a few of the European companies that U.S. investors could use as diversification vehicles away from a weak dollar. Their ADRs make it easy for American investors to buy, but for those truly seeking exposure to the euro, there are hundreds of other stocks listed on the eurozone's biggest stock markets: Paris, Frankfurt, Amsterdam, Milan or Madrid.