A note via MUFG on the euro
- Euro ... higher fuelled by developments in the two key global macro issues that have weighed on the euro this year - the US-China trade conflict and Brexit uncertainties
- With the US soon entering into presidential election campaigning mode, there is building expectations of a partial deal being agreed with China at the APEC meeting in Chile on 16th-17th November
- A key resistance trend-line (Sept 2018 and June 2019 highs) comes in at 1.1200 on around 15th November - a possible key moment in the trade conflict
- "Reinforcing the support for EUR/USD is the confirmation of the Brexit deal passing through parliament on 22nd October. This is more of a key issue for GBP but nonetheless has positive implications for the euro as well. A no-deal Brexit risk was partially priced and while now close to fully removed, there is scope for some further near-term EUR buying
MUFG look for 1.1050/1.1650 ahead
