EUR: Mildly bullish bias in tact - ING

EUR is likely to get little direction from the data in the week as the EZ data calendar is fairly light in the run up to Easter – with single-country Mar CPI data releases in the latter part of the week the standout feature ahead of the EZ-wide inflation print next week (note Germany CPI on Thu), according to Viraj Patel, Research Analyst at ING.

Key Quotes

“We retain a neutral to modestly higher bias for EUR/USD in the near-term amid a politically weak dollar backdrop – although given the potential dent to investor confidence ensuing from the threat of a global trade war, we note that there is heightened emphasis on EZ macro data staying resilient and EZ political risks remaining low to ensure that the EUR’s procyclical rally does not lose any steam. On the latter, weekend reports hint that some progression has been made towards forming a government in Italy.”