The Weekly BriefContributor Global Markets Insights Strategy Team
Positive political results in Austria, the Netherlands and France have supported the euro in recent months. However, the next 12 months may bring more election uncertainty, with Germany heading for the polls in September and Italy by May next year.
Germany poses very little risk to the euro, with 82% of Germans in favour of the single currency. Italy, however, has the lowest level of support for the euro of any eurozone country. Investors should take comfort, though, in the improvement in support for the euro among Italians over the last six months, from 53% to 58%. This notable jump implies a significant decline in eurozone break-up risk, which should be supportive for European equities.
Support for the euro is rising
% answering “yes” to “Do you support the euro?”
Source: European Commission, J.P. Morgan Asset Management. Data as of 31 July 2017.
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