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Felicia Tan
June 16 23:00

HSBC: recent euro rally looks excessive

The recent growth of the euro amid optimism about the support of the European economy by fiscal and monetary policy looks excessive, says HSBC.
HSBC analysts say the European Commission's proposed recovery fund is "obviously positive for the euro," but there are still difficulties to overcome before EU leaders approve this fiscal stimulus plan.
Analysts are also "not convinced" by the argument that the decision of the European Central Bank to expand the Coronavirus Bond Purchase Program by 600 billion euros at the beginning of June will lead to European assets rise, in particular peripheral bonds, and therefore the euro.
EUR/USD fell by 0.1% last time to 1.1248.