Both the current and forward-looking components of the ifo Business Climate Index deteriorated in November, sending a negative signal about German sentiment. The headline series lost 1.2 points and fell to a 9-month low of 96.5…
Germany’s Social Democrats (SPD), Greens, and Free Democrats (FDP) formed a new government with the SPD’s Olaf Scholz replacing Angela Merkel as chancellor. The FDP – whose leader, Christian Lindner, will become…
According to BCA Research’s European Investment Strategy service, EUR/USD weakness reflects more than USD strength. First, investors are increasingly differentiating between the Eurozone and the US inflation picture.…
Highlights The euro has entered a period of acute stress. Some of the EUR/USD’s plunge reflects the dollar’s broad-based strength. The dollar is supported by the market’s pricing of the Fed and China’s…
On Friday, EUR/CHF fell below 1.05 – an important technical resistance level. This move occurred in the context of a general risk off environment in financial markets which was triggered by news that more European countries…
UK retail sales delivered a positive surprise in October. The headline index advanced 0.8% m/m, marking the first increase in six months and beating expectations of 0.5% m/m increase. Moreover, the GfK Consumer Confidence…
Dear Client, There will be no report next week as we will be working on our Quarterly Strategy Outlook, which will be published the following week. In the meantime, please keep an eye out for BCA Research’s Annual Outlook,…
GBP has recently been outperforming. It is the only G10 currency to appreciate vis-à-vis the dollar over the past week which is a reversal of the downward trend from earlier this month. UK Gilt yields have also trended…
Natural gas prices in Europe surged more than 17% on Tuesday on news that German energy regulators suspended certification proceedings for the Nord Stream 2 natural gas pipeline. The pipeline which runs from Russia to Germany was…
Highlights Despite strong economic activity throughout most of 2021, economic surprises have decreased considerably. This helped the US equity market outperform Europe. It also significantly contributed to the euro’s…