Morgan Stanley say they remain bullish on the EUR, and preview Draghi at Jackson Hole later in the coming week:
- Draghi’s Speeches In Focus
MS view on EUR is:
MS point out what to watch in the coming week:
- German ZEW Survey, PMI, German GDP, German Ifo, ECB’s Draghi’s Speeches
- We remain bullish on EUR, seeing EURUSD advance towards 1.25 by 1Q18.
- Markets are focused on ECB Draghi’s speeches in the upcoming week, but ECB sources have suggested in media reports that he will not deliver a new policy message at Jackson Hole, taking risks of a policy surprise out of the equation.
- The ECB minutes also support the idea that the central bank is happy with the current level of the EUR. Therefore, EUR should see more upside as risk appetite stays supported, European economies’ growth outperform, EMU political risks are reduced, and markets hope for a more integrated fiscal and banking union.
“Will not deliver a new policy message …”
Never underestimate Dr. D