MUFG on EUR/USD
- main fundamental driver for the stronger euro has been the paring back of No Deal Brexit risk
- A last minute Brexit deal would help ease downside risks for the euro-zone economy and the euro. It has provided some welcome relief for the euro-zone economy given the current weak pace of growth
- All eyes will now be on the expected UK parliamentary vote on Saturday to see if the deal has sufficient support to pass. Without DUP support, the outcome from the vote will be a close call. For the euro to extend it advance at the start of next week will require the deal to be passed in parliament.
- Otherwise, it will correct back towards the 1.1000-level.
- key resistance … 1.1212