EU finance ministers meet on Thursday, with the recovery fund the top item on the agenda. What will be the impact of the meeting on the euro?
Here is their view, courtesy of eFXdata:
Citi flags this coming Thursday June-11 as the next key date for EUR is Thursday when the Eurogroup finance ministers meet at 14:30 BST.
“Our Rates Strategists think it likely that finance ministers will try to prepare a compromise which can be approved by EU leaders next week, with the EU Council meeting on June 19. While the recovery fund will be the main topic, the FT reports that detailed negotiations may only occur when they meet in person at a special summit expected in late July (no set time).
As a reminder, CitiFX Strategist Ebrahim Rahbari argues the recovery fund is not a gamechanger as its overall size is moderate, there will be some watering down and there is no major ‘Hamiltonian’ element to this proposal. The proposal needs the unanimous approval of all 27 EU member states, which means that it will be some time before the fund is signed off – though we think eventual agreement is very likely,” Citi notes.
“Our Asia trader remains constructive though and expects continued USD weakness to take us to 1.1500 in the short term,” Citi adds.
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