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EUR/USD short-term rate divergence

5bp narrowing US/German 2 yr spread during EUR/USD fall from 1.1052 Mar 26 79bp is low/narrowest since FOMC Further spread tightening surely to question short term EUR/USD downside Modest CPI uptick EZ/German fuel for sp…

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  • 5bp narrowing US/German 2 yr spread during EUR/USD fall from 1.1052 Mar 26

  • 79bp is low/narrowest since FOMC

  • Further spread tightening surely to question short term EUR/USD downside

  • Modest CPI uptick EZ/German fuel for speculation about tapering

  • Seems traders are setting up for & now depend on strong payrolls this week

 

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