Currency Analyst since 2010

Nomura: EUR's in trouble

According to Nomura, there are macro 4 reasons to expect a decline in euro:

  1. Draghi emphasized the notion that the ECB still have several tools at its disposal to fight deflation.
  2. Recent flow information, including from the ECB’s balance of payment data for September, has shown weaker equity inflows into the euro zone.
  3. Key European equity indices have underperformed relative to the S&P500 recently.
  4. Consensus expectations for euro zone growth, which had been generally drifting higher since April, now appear to be turning.

Nomura recommends selling EUR/GBP on the pullbacks towards 0.8400.

Scroll to top