13 Feb 2015
Is the consensus too pessimistic on EU growth? – RBS
FXStreet (Barcelona) - FX Strategists at RBS, preview today’s Euro area's preliminary 4Q GDP release, noting that with consensus remaining pessimistic on EU growth, any upward tick might result in additional short-covering the single currency.
Key Quotes
“Preliminary estimates of fourth-quarter GDP growth are released in France, Germany, Italy, and the Euro-area. The consensus sees a modest 0.2% q/q rise in Euro-area GDP.”
“My colleague John Briggs found on a recent client trip in the US that a common refrain among investors was “is the consensus too pessimistic on EU growth?” That simmering concern may result in additional EUR-short covering should fourth-quarter GDP growth outperform.”
“Still, we expect tepid EU growth momentum to keep the door open to continued, and potentially additional, ECB stimulus in the medium-term.”
Key Quotes
“Preliminary estimates of fourth-quarter GDP growth are released in France, Germany, Italy, and the Euro-area. The consensus sees a modest 0.2% q/q rise in Euro-area GDP.”
“My colleague John Briggs found on a recent client trip in the US that a common refrain among investors was “is the consensus too pessimistic on EU growth?” That simmering concern may result in additional EUR-short covering should fourth-quarter GDP growth outperform.”
“Still, we expect tepid EU growth momentum to keep the door open to continued, and potentially additional, ECB stimulus in the medium-term.”