I am a bear on the Euro.
The Eurozone has seen further improvements in labour market conditions at a moderate pace. Core inflation has remained low, while headline inflation had increased. This would expalin the Bullishness of market on the Euro.
However it is important to note that since core CPI ha s not been on the rise agaianst the ECB’s inflationary targets they intend on still keepiing the exixsting monetary policy to accomodate a steadily increase in economic activity in the Eurozone. The APP (Asset Purchase Program) has also been reduced to lower levels to minimalise hyper-inlation and maintain the moderate growth of economic activiy in the Eurozone.
The ECB is still expaansionary policy and policy has not changes hence I am still a bear on the Euro.
The RBA noted that there is growth based on the rise in commodity prices. increase in housing markets, and lending to households this indicates a growing economy supporting my bullish bias on the AUD.