On overnight piece from Commerzbank on the euro and the US dollar
This in brief on what is driving the pair:
USD:
- rising yields
- rising yield curve
- amazing economic data
Euro:
- a lack of confidence of the market in the promises of the Italian government that the budget deficit will be smaller as of 2020 and that debt levels will fall
- concerns about budgetary discipline remain the Achilles heel of the euro
- Italy is turning into a permanently negative factor for the currency
- expected ECB normalisation process, which had supported the euro over the last weeks, seems increasingly questionable
A pretty good summary of where we are at right now. CB are negative on EUR/USD
