Some comments by Moody's on the Euro area - 16 January 2018

  • Risk of a hard-Brexit remains, but has declined a little
  • Doesn't see risk of Italy leaving the EU
  • Doesn't see risk of a funding crisis in Italy
  • Italy's Five Star Movement may be the biggest party currently
  • Doesn't see an independent Catalonia any time soon

Touching on the majority of political issues surrounding the EU, but just some general comments to the narrative.

EUR/USD still stuck around current levels at 1.2235 while EUR/GBP is at 0.8883.