### POV: BRAKES HIT ON EUR/USD RISE.....>

EURO-DOLLAR: ### POV: BRAKES HIT ON EUR/USD RISE AFTER INFLATION DATA, BUT

ENGINES CONTINUE TO REV. Eurozone core inflation data on Friday was slightly

weaker than expected at 0.9% against 1.0% market consensus, this has seen the

rate drop back from highs of 1.2089 on Friday to 1.2036 last. Despite this the

bias is still firmly for upside movement, the market has an overwhelming long

position in Euro, the most recent CFTC data showing net longs rose by 35k to

128k - an all time high. From a technical perspective above the September 8 high

of 1.2093 the market is in blue sky territory. Stops and long entery interest

could well provide the catalyst to boost the upside potential. While inflation

was disappointing the growth picture in Europe is encouraging too. Q4 GDP is

expected at 0.6% while the annual reading is expected at 2.6%, composite PMI is

at a 6 year high, manufacturing PMI is at a record high and credit cycle signals

are indicating stronger CapEx is on the cards. Overall 2017 was the best year

economically for the Eurozone in a decade, political uncertainty has been swept

aside which has engendered a new confidence in both consumers and businesses,

which should continue to drive growth and strengthen the Euro.