BTMU doesn't see the risk of a slowdown
BTMU FX Strategy Research notes that the EUR has held at higher levels during the last few sessions supported both by the release yesterday of further encouraging signals that the economic recovery in the euro-zone continues to strengthen and by the relative lack of pushback against euro strength from key policy makers.
"The release of the latest euro-zone PMI surveys for August signalled that growth is course to expand solidly again by 0.5% in Q3 according to Markit.
...We see no immediate trigger to for a material slowdown in the near-term. The encouraging developments provide further justification for the ECB to move towards gradually tightening monetary policy in the year ahead.
As a result of stronger growth, the ECB can be more tolerant of a stronger euro as well," BTMU argues.
The euro is up 4 pips to 1.1811 on the day. For bank trade ideas, check out eFX Plus.