VIEW: Sunday saw Nordea suggest that....>

EURO-DOLLAR: VIEW: Sunday saw Nordea suggest that "the "Next Generation EU" will

have much deeper fiscal integration & a much larger extent of cross-border

economic solidarity, at least if the current chief advocate of globalism,

Emmanuel Macron's, wishes are fulfilled. Large EUR-grants are on the table...The

"Frugal Four" is much less potent without the UK, which leaves a fair chance

that France and Germany will literally run over the opposition, but markets

remain surprisingly unconvinced of an ultimate breakthrough for the current debt

deal. Maybe that is also the exact reason why the EUR so far has failed to truly

celebrate the debt deal. What is the scope for EUR-strength if the debt deal

goes through? The tail is probably wide on the upside for the EUR/USD (>$1.20)

outcome space, and compared to the likes of SEK, NOK and AUD, it could be argued

that the EUR needs to catch up a bit just to reflect the post "peak corona fear"

world. Low delta zero-cost riskies remain our favourite weapon of choice when

betting on EUR strength. We go long EUR/USD with a target of $1.1670 and a stop

loss at $1.0780. The big question is now if Christine Lagarde plays her cards

right at the ECB presser."