Less US-focused hope for a recovery is helping the euro. Economists at MUFG Bank say the common currency will take advantage of the recent outstripping of cyclical stocks.
The best performance in the Euro Stoxx cyclical stock demonstrates a potential shift in expectations.
“The Euro Stoxx 600 cyclical index started to perform better in relation to the overall Euro Stoxx index after a period of lag. Cyclical indicators were better from May last year to February 25, but then moved into a decline until the end of March. Cyclical indicators started to show better results again and are now raising EUR / USD. This cyclical dynamics in relation to the general market dynamics is closely correlated with EUR / USD, and if this can be maintained, this suggests the possibility of further growth in EUR / USD. “
“Prospects for vaccinations are improving and the pessimism that existed in March has eased. In the 24 reporting EU countries, on average, 64.4% of people over the age of 80 received their first vaccine, according to data released yesterday by the ECDC. EU Commission spokesman Stefan De Keersmaker said the EU target of vaccinating 55% of the population by the end of June and, ultimately, 70% by the end of summer is still achievable.
“The outlook for other countries now looks a little less worrisome, which is causing the euro short positions to be eliminated. This could continue in the short term. ”