EUR/USD: Terrible French PMIs outlines the issue for the EUR. There are simply too many political obstacles in front of a strong EUR-performance currently. 1.13 is at odds again in EUR/USD and it looks like the wedge has broken on the low side. We still think that EUR/USD could be headed higher in Q1 but are not willing to bet on it yet. Stay long EUR/AUD (or go short AUD/USD for carry reasons). EUR/GBP: We still consider Theresa May a “walking dead” politically, but opt to take profit on our long EUR/GBP anyway, as much negativity is already priced in. May’s deal looks stone-dead, despite her win in the confidence ... (full story)