Why Euro Bulls Are Still Optimistic
- Slide on Italy is ‘double whammy’, to be ‘shallow’: ING
- Market consensus for euro to end year at $1.26 hasn’t budged
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Euro bulls are keeping the faith.
The shared currency is headed for its worst run of weekly losses in more than three years, weighed down partly by speculation that Italy’s populist parties may seek a 250-billion euro debt writeoff. While the euro may be in for some more turbulence in the near term, analysts see its bullish trajectory being largely intact on optimism the euro-area economy will pick up momentum, leaving the European Central Bank on course to tighten monetary policy.