Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone’s relatively better balance of payments position.
EURUSD should be rangebound
The topic of trade remains front of mind for investors, businesses and consumers. This year, online searches for the words “trade” and “tariffs” have surged to levels not seen at any point over the past 15 years.
A greater percentage of negative yielding bonds has reignited the hunt for yield as investors look for higher yields in riskier asset classes.
Equities continue to look attractive relative to fixed income, and could very well move higher in the short-term given firmer economic data and a Fed on hold.
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal.
We continue to believe that no UK politician can secure a better deal simply because there is no other solution to the Irish Border.
Market sentiment towards the Chinese currency has shifted significantly
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal. Our view has always been that we would at some point end with a relatively soft Brexit.