The euro (EUR) tested the upper part of 1.08 on Monday and quoted at a maximum of three years above 1.14 previously. It is remarkable that the increase in EUR is occurring in a context of expansion of the EZ/US differential Scotiabank.
Markets undo US assets
“But the great movement in the yields of the bonds and the differentials (the 2 -year differential has expanded 43 basic points since Monday) this week reflects a lack of confidence in the US Treasury bonds and a demand for refuge for German bunds and, therefore, for the EUR. The EUR is moving away from its maximum intradic in the USD above 1.14, but drift reflects a pause or consolidation in the rally rather than a reversal at this time.
“In fact, the upward trend in the EUR seems to be firmly established in short, medium and long -term studies, suggesting that minor falls (low/media 1.12 perhaps) are a purchase opportunity and that more EUR profits will be developed in the medium term. The solid EUR profits above 1.12 This week suggests that EUR could be aimed at a new higher range between 1.17/1.22.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
