​EBC Markets Briefing | Euro firms on hope for new peace talks; Wells Fargo missed estimates

The euro hovered near multi-week highs on optimism over potential US-Iran talks, but slowing Eurozone growth, policy uncertainty and technical resistance may limit further gains.
EBC Financial Group | 204 hari yang lalu

The euro hovered near its highest since early March on Wednesday, amid growing optimism after a WSJ report that a second round of US-Iran negotiations are being considered.

Eurozone growth is now seen slowing to 1.1% this year from 1.4% in 2025, as the war more than negates better-than-predicted expansion at ⁠the end of last year, the IMF said in its World Economic Outlook.

A planned rise in defence spending will mitigate some of the expected drag but the ⁠ramp up in spending is relatively slow, so the boost is likely to materialise later, the IMF added.

The ECB has not made its mind up on whether to raise ‌interest rates as the fallout of the Iran war is still unclear, President Christine Lagarde said. Traders have fully priced in a rate hike by June.

Economic momentum across Europe and Central Asia is expected to weaken in 2026, according to the World Bank. Many countries are caught up in the energy shock with higher fiscal deficits and tighter budgetary conditions.

Citadel CEO Ken Griffin struck a more pessimistic tone, saying that the global economy is headed toward a recession if the Strait of Hormuz stays shut for the next 6-12 months.

The euro's death cross occurred, but without MACD expansion, a bearish reversal is not a given. If it fails to break above the resistance around $1.1830, another leg lower may be seen.

Asset recap

As of market close on 14 April, among EBC major products, Micron Technology shares led gains. The company is increasing its manufacturing capacity, with the expansion expected to kick in by the middle of this year.

Wells Fargo warned rising energy prices will likely affect the US economy, after the bank reported first-quarter interest income and revenue that missed Wall Street expectations.

Renewable energy companies posted strong Q4 result in general, which was driven by the secular trend of green energy that is upending traditional power generation.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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