EUR shifts into 1.15–1.20 range in coming months
“After months of waiting, German government finally signed off the draft budget for 2025, paving the way for a significant increase in spending on defence and infrastructure. Defence spending budget will more than double to EUR152.8bn by 2029.”
“Meanwhile, NATO member states agreed to a big increase in military spending (5% of GDP). Taken together, these reinforced our view that fiscal will boost German growth in coming years, and potentially have a positive effect on EUR. In fact, the potential for big defence/infra spending is one of the factors underpinning our more-constructive outlook on EUR. ”
“Daily momentum turned mild bullish while RSI rose. Break-out trade likely as EUR shifts into 1.15 – 1.20 range in coming months.”
