The new Italian government did not dent the Euro much over the weekend. Investors are probably waiting for more concrete policies from the incoming administration before making a move.
Against Sterling, the Eurozone currency has been changing hands over a fairly tight range since May. This rate broke upwards in early April before the BoE slammed it down. Now, the rate is trading in the prior trading range at 1.12-1.15. And much of the recent moves were led by day-to-day macro data, hence choppy.
On one hand, UK economic data was not positive. But neither was EU’s. Growth is clearly decelerating. Moreover, the ECB has also not made up its mind about the QE policy. Therefore, we expect GBPEUR to continue its rangebound pattern for the time being.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.