The currency to buy the Euro against is the Pound, at last for today. MPC
Governor Mark Carney survived his brush wit the Treasury Select
Committee largely unscathed and was pretty clear that further easing is
possible. We’ve priced in good data and if I look at relative real
yields for the UK vs. Germany, they are absurdly low in the UK on any
I’m told (regularly) to hold my horses on my desire to sell gilts, but in the meantime, I still think GBP/USD is topping out below 1.35 and I think long EUR/GBP is a decent risk-reward trade here.