-
EUR/USD: These 2 Charts Send Warning Signals - Citi
In a note to clients today, CitiFX highlights two charts that are causing concern on their EUR/USD view: 1- The ratio of DAX/SPX suggests EUR/USD should be closer to 1.21 (over 7% higher). 2- 10y EURUSD swap spreads suggests EUR/USD 1.21 as well. "When both equities and swaps point to a higher EURUSD, we pay attention – regardless of where we think EURUSD is headed from a macro perspectiv," Citi argues. "Fundamentally, our year-end view remains 1.05...Leaving the Q4 view aside, the charts below are pretty convincing – and present a strong challenge to the macro framework," Citi adds. This, according to Citi, ... (full story)