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EUR Optimism To Continue Next Week - But 'Bumps' In The Road Could Emerge
In developed currency markets investor optimism should persist next week lifting risk sensitive currencies including EUR. However in contrast to last week, two points could provide obstacles to further EUR gains. Firstly, German elections could spark heightened uncertainty about the possible need for a Grand collation come the general German elections in September (see our macro section above). In addition, Cypriot negotiations with the Trioka this week regarding their requested EUR17.5bn loan are unlikely to produce an agreement. Combined with continued macroeconomic uncertainty in Europe, such factors could help ... (full story)