EUR remains buffeted in a range - Westpac

Tim Riddell, Research Analyst at Westpac, suggests that the Draghi speaks at this weekend’s IMF meetings and could again raise the prospect of changes in ECB guidance and is likely to impact the direction of the EUR.

Key Quotes

“Political pressures and uncertainties continue ahead of Italy’s reform bill and Austrian presidential votes on December 4th and other key elections in 2017.

German financial sector strains have abated but European financial sector Itraxx indices remain relatively elevated. BIS reports show the high exposure of Europe’s banks to foreign derivatives and further strains could act to increase uncertainty but could also trigger defensive repatriation of banking funds.

EUR remains buffeted in a range as these factors vie against each other.

SNB willingness to increase NIRP to counter inflows, high derivatives exposure and low economic activity leave it pressured, but range bound.”