Time to call an election in Ireland – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained, apparently, that when Irish eyes are smiling, it’s time to call an election.

Key Quotes:

“And that is why Prime Minister Kenny has done. The election will be held on February 26. The polls suggest that the governing coalition (Fine Gael and Labour) it may struggle to secure a majority.

In some ways, Kenny is making the same bet as Spain’s Rajoy. The economy’s strength will provide a lift on election day. It has not worked out so well for Rajoy though Kenny may have greater success. However, this is most likely to be in a coalition.

This year is expected to be the third consecutive year that the Celtic Tiger is leading European growth. Last year’s 7% pace is not going to be sustained, but around 4% growth will likely be sufficient to push unemployment lower. Unemployment peaked in 2012 near 15% and finished last year at 8.8%, the lowest since late-2008. Both Spain and Portugal have unemployment rates above the eurozone aggregate. Ireland’s is below it.

Ireland’s 10-year bond yield peaked in 2011 near 14.2%. …read more

Source:: FX Street