Majestic & Sons uses fundamental forecasting. Using regression analysis, it has determined the following equation for the euro:

euro_t= b₀ + b₁INF_{t - 1} + b₂INC_{t - 1} = .005 + .9INF_{t - 1} + 1.1INC_{t - 1}

The most recent quarterly percentage change in the inflation differential between the U.S. and Europe was 2 percent, while the most recent quarterly percentage change in the income growth differential between the U.S. and Europe was -1 percent. Based on this information, the forecast for the euro is an appreciation of ____%.?