Nomura: EUR's in trouble
According to Nomura, there are macro 4 reasons to expect a decline in euro:
- Draghi emphasized the notion that the ECB still have several tools at its disposal to fight deflation.
- Recent flow information, including from the ECB’s balance of payment data for September, has shown weaker equity inflows into the euro zone.
- Key European equity indices have underperformed relative to the S&P500 recently.
- 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.