The euro has been struggling with multiple issues but still looks strong. What’s next?
Here is their view, courtesy of eFXdata:
Citi discusses EUR outlook and thinks that Italy is likely to limit the scope of EUR/USD upside into year-end.
“Italy continues to take a stand against the rest of the EU with Italian Deputy Premier Di Maio criticizing ECB President Draghi while looking for ECB support to stabilize Italian bonds. More importantly, Italian banks appear to be provoking concern with a Reuters source report saying the Bank of Italy would publish an assessment of how rising government yields are affecting Italian banks,” Citi notes.
“This week in the euro zone sees euro zone’s GDP (Citi expects 0.3%QQ growth but with downside risks) and core HCIP Inflation at 1.1%YY,” Citi adds.
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