FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ Currency Analyst Lee Hardman notes that the single currency has lost upside momentum over the past week.
He notes that yesterdays weaker than expected IFO report for September, “has served to highlight that economic fundamentals in the euro-zone remain weak despite policy action taken by the ECB.”
He believes that the more negative sentiment towards the euro in the near term is also reflected in German newspaper ‘Bild’ which has speculated that the ECB and Bundesbank are instructing lawyers to determine the legality of the ECB’s bond buying scheme.
Elsewhere, Hardman notes that the Portuguese Governments decision to swap pay cuts for tax rises following mass protests may cause some concern over its ability to continue implementing reforms.
He notes that yesterdays weaker than expected IFO report for September, “has served to highlight that economic fundamentals in the euro-zone remain weak despite policy action taken by the ECB.”
He believes that the more negative sentiment towards the euro in the near term is also reflected in German newspaper ‘Bild’ which has speculated that the ECB and Bundesbank are instructing lawyers to determine the legality of the ECB’s bond buying scheme.
Elsewhere, Hardman notes that the Portuguese Governments decision to swap pay cuts for tax rises following mass protests may cause some concern over its ability to continue implementing reforms.
