BTMU FX Strategy Research argues that EUR downside should be very limited on the back of the following 2 factors:
First, ahead of the French elections, BTMU notes that the opinion polls in France indicate Marine Le Pen is making no in-roads into the 2nd round lead of Emmanuelle Macron.
Second, BTMU notes that the ECB data on portfolio flow in the euro-zone have recently revealed a shift in long-term portfolio investments that point to upside risks for the euro if sustained.
"These factors suggest the downside for the euro is very limited from here with better conditions falling into place for a period of EUR appreciation," BTMU argues.
EUR/USD is trdaing circa 1.06 as of writing.
Source: BTMU ResearchOriginal Article
