EUR/USD: Patience is a Virtue - SocGen
Kit Juckes, Research Analyst at Societe Generale, suggests that as
EUR/USD skips towards 1.14, the fact that it’s doing so despite huge
outflows of long-term capital and wholesale abandon of European bonds by
foreigners, doesn’t really help.
Key Quotes
“The Euro is going up despite the ECB. Back in December, when EUR/USD
trade below 1.06 ahead of fed tightening, 10yearn Treasury yields were
at 2.15% and the EU/US spread at 177bp. Today, those numbers are 1.78%
and 160bp. A weaker Euro needs something in this mix to change.”
