In the view of the analysts at Australia and New Zealand (ANZ) banking group, the Euro risks further downside in the second quarter of 2019.
Key Quotes:
“Risks skewed towards EUR downside in coming months.
Both the Fed and European Central Bank (ECB) moderated forward guidance on interest rates last month, removing expectations that interest rates will rise this year.
That has contributed to falling volatility, but we are unconvinced that this can last much longer.
Euro area (EA) growth is in the doldrums.
Lead indicators signal activity weakness into Q2.
Credit growth is also losing momentum.
Investment and hiring are being restrained by geopolitical uncertainties such as: the European parliamentary elections in May and the rise of populist parties; and unresolved US trade talks, in particular the threat of US auto tariffs.”
Also Read: EUR: Significant binary risks still loom large – Barclays
EUR/USD: ‘Still on the struggle bus’ – Goldman Sachs
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