Eurozone: Few reasons to be cheerful - ING

According to Petr Krpata, chief EMEA FX and IR strategist at ING, the soft European June car sales figures highlighted the downside risk to the eurozone growth outlook, particularly in light of the openness of the eurozone economy and its exposure to car exports.

Key Quotes

“EUR/USD should continue testing the 1.1200 level today. By extension, this does not bode particularly well for the satellite central and eastern European economies exposed to (a) eurozone growth; and (b) the car industry. This is one of the key reasons why we remain negative on the overbought Czech koruna.”