Last night was a very big night for me. I thought that the macro-drivers reinforced my view that the Euro is still heading substantially lower but when I sat down this morning the Euro is higher. Structurally my sense is that the results of the European Parliamentary elections reinforce the ECB has to do something next week and further down the track if the economy and crucially inflation doesn’t recover. The key here is that besides Angela Merkel in Germany and Renzi in Italy the mainstream parties across the EU performed poorly while those on the left in Spain and Greece and those on the right in Britain and France ... (full story)