EUR: Solid growth trends and continuing positive politics - Westpac
|Comparatively solid growth trends and continuing positive politics (Brexit permitting) should support yields spreads and EUR and offset concerns over long positioning risks, according to Tim Riddell, Research Analyst at Westpac.
Key Quotes
“Although forward-looking components of this week’s ZEW surveys suggest some moderation, surveys are still punching at six year highs. The lack of ‘new’ key data releases in the coming week suggests that markets will continue to assess the positive trend in Eurozone data since mid-2016 as displayed by industrial production’s gyrating around the latest OECD leading indicators for Eurozone.”
“Macron’s REM/MoDem (EU positive) alliance is set to gain a landslide victory in French Assembly this weekend while the risk of snap elections in Italy and a Finnish government collapse have faded.”
“EUR/USD could push through 2017 highs to the 1.13 handle or above.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.