EUR sluggish in recent weeks despite tightening credit spreads - AmpGFX

EUR has also been surprisingly soft in light of the convincing win by French President Macron’s new En Marche political movement securing a majority in parliamentary elections; resulting in significant further narrowing in French-German bond spreads, and falling corporate credit spreads in Europe, explains the analysis team at Amplifying Global FX Capital.

Key Quotes

“It is not clear that we can blame the underperformance of EUR and JPY in the last week on monetary policy, but the ECB, like the BoJ, recommitted to its current QE program and downplayed prospects for more rapid normalization.”

“The ECB lowered its inflation forecasts for 2018/2019, whereas the Fed maintained its inflation forecast for the next two years.  This is despite stable to slightly higher core inflation in the Eurozone in recent months and a sharp fall in US core inflation.  EUR, like the  JPY, may have become somewhat overbought in recent months, and vulnerable to a period of correction.”


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 securities. 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 Forex 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.