“The laundry list of challenges — coalition talks in Germany, Catalan secession, an Austrian election — has failed to meaningfully impact either the single currency or the region’s sovereign yields. The Bloomberg Euro Index trades only about ~1% lower than the multi-year high seen in late August,” according to ZeroHedge.
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There are some political challenges to be aware of as well.
“Political and economic challenges remain. The case for structural reform remains as strong now as it has at any stage since the single currency was adopted,” reports ZeroHedge. “But investors seem optimistic that this can be achieved, especially if France and Germany begin to co-operate more than they have in the past.”
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