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27 Nov 2013
Flash: Positioning for EUR strength
FXstreet.com (London) - Investec Bank ‘s currency overview explained that market makers are positioning for Euro strength.
Key Quotes:
“Another day, another barrage of central bank comments from Europe which has left the market scratching its head and settling on continuing to buy the single currency as it’s adopted the view that the rate cut in Europe doesn’t really make the euro any worse off than other major economies”.
“Short term Rate differentials between Europe and the US and UK remain range bound and the compression in sovereign bond spreads continues to support the single currency”.
“The general rhetoric from ECB members yesterday morning pointed to more rate cuts and negative rates but the move lower in EURUSD on the back of this was shallower than previous dips, suggesting market makers are positioning for further Euro strength versus the Dollar”.
Key Quotes:
“Another day, another barrage of central bank comments from Europe which has left the market scratching its head and settling on continuing to buy the single currency as it’s adopted the view that the rate cut in Europe doesn’t really make the euro any worse off than other major economies”.
“Short term Rate differentials between Europe and the US and UK remain range bound and the compression in sovereign bond spreads continues to support the single currency”.
“The general rhetoric from ECB members yesterday morning pointed to more rate cuts and negative rates but the move lower in EURUSD on the back of this was shallower than previous dips, suggesting market makers are positioning for further Euro strength versus the Dollar”.