EUR keeps the bullish note unchanged – TD

In view of Strategists at TD Securities, the single currency keeps the bullish bias intact for the time being.

Key Quotes

“The macro picture remains little changed, as the ECB has to balance solid growth with continuously disappointing inflation. So far there hasn't been much concern about the stronger EUR's impact on growth, although the EUR's impact on inflation is a source of debate at the ECB. Most ECB members seem to be of the view though that the positive impact from stronger demand will outweigh the drag on inflation from EUR appreciation”.

“The EUR is at the forefront of the convergence trade amid solid growth and rising inflation. We are strategic bulls as the ECB moves closer to normalization. Policymakers have yet to express major concerns on FX appreciation, while BoP and capital flows remain positive tailwinds”.