April 27, 2022 - 11:57 AM 378 views
Goldman Sachs analysts paint a
positive picture of the euro, offering some relief to bulls while predicting
additional gains in EUR/GBP.
key points to be noted are:
Last week’s European Central Board
(ECB) meeting kicked off with a dovish message that said about a policy which
was unchanged from the beginning of the year despite the noticeable spikes in
the inflation rates that surprise each time.
But, since then, the ECB speakers
have emphasised that there might be a possibility of an increase in inflation
rates over the summer. During the meeting, President Lagarde warned of adverse
risks to the economy's outlook, but recent developments, such as the election
of anti-European Macron as president for a second time, have created more
positive impacts on the market and on the Euro currency.
On a lighter note, the April PMIs
flash reading suggests that the reopening momentum of the services sector will
evenly neutralise the impact of the supply chain disruptions in the
manufacturing sector. Keeping this in mind, we can see a positive note for the
Euro currency, including the upsides of EUR/GBP.