FX Rundown: October 14, 2019
Fundamentals: Risk assets found broad support to finish last week as President Trump paraded an interim trade deal. Mounting positivity surrounding Brexit and soft U.S inflation data brought additional tailwinds to help the Euro settle Friday at the highest level since September 19th. The tables quickly turned coming out of the weekend though, cold water was poured over progress on each U.S-China and Brexit. Still, the Euro is clinging to gains in a low volatility atmosphere ahead of a crucial German ZEW Sentiment read tomorrow morning. The economic data has not gotten any better, Chinese Trade Balance last night showed Exports and Imports both contracted more than expected and tomorrow we hear the IMF’s revised growth estimates. We continue to believe rallies in the Euro are sell opportunities and if ZEW misses at 4:00 am CT tomorrow, look for follow through from today’s session to the downside.