Categories: Markets

EUR/USD: The Euro is climbing a steep slope against a strong wind – SocGen

EUR/USD: The Euro is climbing a steep slope against a strong wind – SocGen

Kit Juckes, Chief Currency Strategist at Societe Generaleinforms that the Euro advances uphill and against the wind.

The wind blows against the Euro

“The stock market is insulting the bond market, accusing the yield curve of sending false signals of recession due to QE distortions. Against this background, the Euro is running uphill against a strong wind.”

“Market prices expect the ECB to continue raising rates in the second half of the year and the Fed to cut them, so that the gap between official interest rates would fall below 1% by the end of the year from Current 2% Given the contrast between Friday’s non-farm payrolls and yesterday’s weak German industrial production data, it has been difficult to narrow the gap further.”

Source: Fx Street