It is probably too optimistic to expect both common EU debt and a widespread regulatory roll back, but it may be worthwhile buying a EUR lottery ticket in option space, according to analysts at Nordea. Danske Bank sees upside potential for the shared currency, too. Key quotes “We see a very low risk that the Karlsruhe ruling will prove to be a medium-term obstacle for the ECB.” “If the Franco-German debt proposal (miraculously) passes the test during the coming week and wins the backing from all of the EU-27, we reckon that it would be a major EUR positive event.” “It will probably be hallelujah days for the EUR, should a new regulatory environment in the Euro area be added to the mix on top of common EU debt. Lawmakers have started pondering whether to roll back MIFID II, which would likely be a big positive for the banking sector profitability specifically and for credit growth in general. The EUR has generally struggled versus USD during the relative tightening of Euro area regulatory burdens versus peers in the US.” “If we assume that MIFID II is rolled back and that 3M EUR/USD hedge costs remain as low as currently, we make the case that >1.20 readings in EUR/USD could be on the cards.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY clings to gains near 50-day SMA, bulls await a move beyond 108.00 mark FX Street 3 years It is probably too optimistic to expect both common EU debt and a widespread regulatory roll back, but it may be worthwhile buying a EUR lottery ticket in option space, according to analysts at Nordea. Danske Bank sees upside potential for the shared currency, too. Key quotes “We see a very low risk that the Karlsruhe ruling will prove to be a medium-term obstacle for the ECB.” “If the Franco-German debt proposal (miraculously) passes the test during the coming week and wins the backing from all of the EU-27, we reckon that it would be a major EUR positive event.”… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
