EUR likely to react to positive data: bullish on EUR - Nomura

Analysts at Nomura explained that, last week, the ECB chief economist Peter Praet suggested ECB guidance is “datadependent.” 

Key Quotes:

"In April he mentioned forward rates’ low sensitivity to macroeconomic news (or “data-independent”) as an indicator of the effectiveness of the ECB’s policy package including forward guidance.'

"As the ECB’s guidance will be data dependent, we think EUR rates’ lower sensitivity to macroeconomic news will be a thing of the past."

"As a result, EUR will be more sensitive to economic news, while political uncertainty has also diminished. We expect euro area economic fundamentals to improve further and strong EUR performance to be maintained during the summer."