Greg Gibbs, Founder, Analyst, & PM, amplifying Global FX Capital Pty Ltd explained both the EUR and GBP have taken a beating in the last month.
Key Quotes:
“The EUR is near key support and may recover somewhat as risk aversion related to Italy eases and Q2 economic reports recover.
However, we see the bounce as limited with Italian political risk set to linger and the potential for growing trade and political tensions with the US.
Higher oil prices should also boost confidence in the US economy over the Eurozone. We have more confidence in a recovery in the GBP.
PM May is likely to resist the latest bout of political turmoil and progress has been made in Brexit planning and negotiations. BoE rate hike expectations are likely to come back into focus.”
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