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EUR/USD, GBP/USD: Position For 'European Policy Mire' - Credit Suisse
Recent data such as Germany's Ifo survey or composite PMI data have been far from shabby. And rate differentials vs. the US have largely been stable of late. Why then has EURUSD been trending lower again? We repeat our view that we believe the political environment in Europe is a major drag on the single currency. The UK's Brexit vote – and the subsequent GBP collapse – helped highlight the structural political and economic vulnerabilities that can hurt European currencies even when underlying economic data are still decent. In this context, the apparent failure of the EU and Canada to agree a free-trade deal due ... (full story)