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28 Jul 2015
EU/US yield spread bolstering EUR/USD – Societe Generales
FXStreet (Edinburgh) - Strategist Kit Juckes at Societe Generale noted the recent upside momentum in the pair has been backed by a wider EU/US yield spread.
Key Quotes
“The 10-year EU/US yield spread is range-bound and the 2-year rate spread is back up over the last couple of days, both very consistent with the EUR/USD bounce, and doing absolutely nothing to suggest the range will break without new developments”.
“No-one (us included) expects much from the FOMC statement tomorrow other than affirming data-dependence, so we’ll have to wait for the GDP data Thursday (expect a strong 3.3% growth rate)”.
Key Quotes
“The 10-year EU/US yield spread is range-bound and the 2-year rate spread is back up over the last couple of days, both very consistent with the EUR/USD bounce, and doing absolutely nothing to suggest the range will break without new developments”.
“No-one (us included) expects much from the FOMC statement tomorrow other than affirming data-dependence, so we’ll have to wait for the GDP data Thursday (expect a strong 3.3% growth rate)”.