🇪🇺🇺🇸EU-U.S. Macro Sentiment Rises In Favour Of Euro: Cable FX Macro
- Rosbel Durán
- Apr 10, 2023
- 1 min read
**As seen in Macro Walk report 04/07/23, subscribe at cablefxm.co.uk/reports
Different narratives have been driving exchange rates this year, while this might not be the primary focus today, we're heading into a recession and growth differential could start playing a key role here
The EU-U.S. spread of the Citi Economic Surprise Index has recently turned in favour of the euro as the U.S. gauge falls. This move comes after we received weaker than expected U.S. economic data
While the U.S. CESI remains in positive territory, if the trend is to continue, we could see the differential widening. Historically, this has capped USD gains vs the euro. As the growth outlook is priced in, rates peaking in the U.S. and a stronger EU macroeconomic view could push EUR to re-test recent highs
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