EUR: Markets look to political events in Europe - BNPP

Research Team at BNP Paribas, suggests that given the surprising outcomes of recent political events, markets will increasingly look to upcoming European agenda in anticipation of possible event risk.

Key Quotes

“The French Republican primaries over the next two weekends (20 and 27 November) will be key, as they will determine the political colour of the conservative candidate ahead of next year’s French presidential elections. Focus will also be on the Italian referendum and the Austrian presidential election, both on 4 December.”

“Last week, Swedish CPI showed the highest inflation print since 2012. The SEK has remained undervalued for some time, and recent price action suggests that this reading could prove a catalyst for a pull-back in EURSEK towards its CLEER of 9.03.”