EUR to trade more resiliently - Nomura
Analysts at Nomura expect EUR to trade more resiliently as mid-term flow shifts, and thus they maintain a EUR bullish bias into next year.
“EUR has outperformed in G10 space in recent days. We take a look at the broader flow picture – where the basic balance of the euro area’s BoP has improved gradually this year. The stronger economy has attracted equity and FDI flows, while the current account surplus has stayed robust. We see three reasons for fixed income flows turning more positive into 2018, which should turn the basic balance of the BoP firmly into a surplus.”