Simon Constable: “Everyone’s bet on the US dollar, where factories are being built. Harbinger of a reverse, so be long the euro; a brutally tricky market to get right.”

Oct 03, 2018, 12:39 AM

Image: A colorful euro. "Go long on the euro."

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Simon Constable (@RealConstable)

Lots of London gossip about the Tories’s annual meeting: Brexit, yes or no? Most favor, but an adamant minority opposes. SC in Edinburgh: What’s the key sticking point is the Northern Irish border, dating back to the Troubles. Nicola Sturgeon, Scottish First Minister, is looking for a special deal for the Irish, so perhaps Scotland can have that, too. Scotland is very pro-Europe.

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The US economy is booming; the European economy is limping. Everybody knows this and has bet on the US dollar, where factories are being built. Harbinger of a reverse, so be long the euro; a brutally tricky market to get right. JB: Euro and pound are in retreat.

SC: The plunge in the pound is due to Brexit; in the euro, is that the whole eurozone economy is slow-growing – France and Germany are half the eurozone. A bilateral deal between the UK and the US would be extremely welcome in Parliament.

Read the article: https://www.barrons.com/articles/the-euro-is-due-for-a-rebound-1538146881