Data dependent euro more room to appreciate - Nomura

Analysts at Scotiabank explained that ECB communications are gradually changing, which likely allows euro area rates and EUR to react to the macroeconomic news. 

Key Quotes:

"Our economists remain positive on the growth and inflation outlook for the euro area, expecting incoming dataflow to surprise the consensus on the upside. EUR has traded strongly since the first round of the French presidential elections, but a “data-dependent” EUR has more room for appreciation. 

Diminishing political uncertainty means economic fundamentals become more important as well. 

We expect EUR strength to be maintained into the summer, as the economy shows strength. We currently recommend going long EUR against USD, while EUR/JPY long positions also look attractive."