EUR: Solid growth trends and continuing positive politics - Westpac

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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