It looks like an increasing number of central banks are wanting to ease monetary policy. With countries like Switzerland and Sweden having already cut rates, speculation is now firming up for similar moves in the eurozone, the UK and Canada over the coming months. And listening to the Federal Reserve Chair Jerome Powell, it seems he would love to see lower rates in the US – if only the data would allow. It is against this ‘glass half full’ backdrop that FX volatility has softened again and procyclical currencies – including the euro – have found some support. We estimate that EUR/USD is close to medium term fair ... (full story)