Eurozone: Q1 softness likely to persist during Q2 18 - Westpac

The misses in industrial production across the Eurozone, softer than expected German factory orders and deeper slippage in ZEW surveys for both Germany and Eurozone suggest that Q1 softness, after the strength of 2017, is likely to persist during Q2 18, according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Although tensions over Italian and Spanish politics have subsided (the former will keep returning into Italy’s October budget), the softness in data is likely to crimp ECB policy adjustments in Q3 18.”

“EUR/USD rebounds should still struggle around the upper bounds of a perceived 1.12-1.19 range.”