Euro Bulls Look for French Voters to Seal the Deal: Macro Week
- U.S. data, Fed talk under scrutiny as payrolls fail to excite
- Super Thursday arrives for the BOE amid Brexit hard talk
JPMorgan's Cavenagh Sees Stronger Euro in 2H
The euro rose for a fourth consecutive week despite a hawkish-sounding Federal Reserve as the market discounted a win for centrist Emmanuel Macron at the French presidential run-off.
Dollar bulls must have been heartened to see geopolitical tensions with North Korea ebb, a U.S. government shutdown averted and House’s healthcare bill passed successfully. The market is now assigning a 75 percent probability of a rate increase in June, compared with 60 percent before the Fed met on Wednesday, based on overnight indexed swaps and the Fed funds effective rate. The employment report for April was mixed: while the expansion in U.S. payrolls beat the median estimate, the number for March was revised lower.