How much higher can the euro go?

Key questions facing investors as the first week of May begins:

The euro has risen 2 per cent against the dollar since the first round of voting, helped on Friday by stronger inflation figures.

Political risks will subside, says Valentin Marinov of Credit Agricole, allowing currency investors “to focus on the improving eurozone fundamentals and the growing prospects of ECB QE taper”. The euro may overshoot to the upside, he adds.

Analysts at Bank of America Merrill Lynch expect high grade US debt sales of $110bn and $70bn for May and June, respectively, adding that this is “significantly below the totals for the same months last year” and “the most tangible reason for this slowdown is MA funding.

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Article source: http://www.dailystar.com.lb//Business/International/2017/May-01/404024-how-much-higher-can-the-euro-go.ashx