Eurozone economic data continues to improve

Huitong Network3month8Daily News - Wednesday(3month8day)At the end of the Asian market session, the euro continued to fluctuate narrowly against the US dollar and is now trading at1.0564frontline.

according toFX678Observation, Bank of America Merrill Lynch(BofA Merrill)On Thursday, it is stated that(3month9day)At the regular policy meeting held, the European Central Bank will maintain the current monetary policy unchanged, and President Draghi's stance may be dovish. However, after the summer, the market will have confidence in the European Central Bank's quantitative easing(QE)Further discussions on purchasing prospects are inevitable.

Bank of America Merrill Lynch: European Bank3Monthly resolution predicts dovish stability, Euro may remain indifferent

This interest rate decision will be a routine event with little impact on the euro. Eurozone economic data continues to improve, and overall inflation has risen to2%The target level is, but the core inflation rate is still lower than1%However, overall inflation is expected to decline later this year as the boost from higher oil prices to inflation diminishes. Draghi is aware of the challenges he will face later this year, and the market will expect him to reveal them at that timeQEThe signal of the future.

The current dominant factors for the euro are still the US dollar and European politics. The Federal Reserve's interest rate hike process dominates the US dollar, but US fiscal policy will evolve into an important influencing factor at the beginning of this summer.

The French election situation continues to drag down the euro, and this situation is expected to continue. Even though it is clear that the probability of Ponzi winning the election is extremely low, as the election date approaches, the market may become increasingly concerned about her victory, as once she takes office, it may lead to the disintegration of the eurozone.

Huitong.com pointed out that the bank stated that if there are no unexpected events in the European elections, the euro will gradually strengthen, especially against the Japanese yen, as the market will begin to price the end of the European Central Bank at that timeQE。
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