EUR: Risks still seem skewed lower - Westpac

Richard Franulovich, Research Analyst at Westpac, explains that EUR’s downdraft from near 1.09 may have stalled but near term risks still seem skewed lower, primarily around Eurocentric risks.

Key Quotes

“French election polling favours a market friendly Macron win but the high level of undecided voters (30%) means that there is still plenty of room for surprises.”

“ECB expectations have swung back toward a more cautious view on tapering and there’s little on the immediate data and ECB horizon that could realistically force yet another pivot back to a hawkish rethink of the Bank’s policy intentions.”

“Both yield spreads and EUR/USD look set to trade back towards the lower end of recent ranges.”