Credit Agricole CIB Research discusses the EUR tactical outlook and adopts a constructive bias in the near-term.
"We continue to expect the EUR to remain resilient in the near-term. The retail sales data due on Tuesday could point at recovering domestic demand in the Eurozone.
CACIB inflation strategists further expect that the outlook for the Eurozone inflation would reaccelerate from here. This view could be confirmed by the HICP inflation due tomorrow as well," CACIB notes.
"All this, taken together with the fact that the ECB will be reassessing the effectiveness of its monetary policy tools throughout 2020, this could encourage investors to pare back further their rate cut expectations," CACIB adds.