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EUR/USD: Cacophony Of ECB Signalling - SocGen
In a note to clients today, Société Générale senior forex strategist Sebastien Galy weighted on the ECB possible reactions with regarding to the higher Euro and discussed what does this mean for EUR/USD from an investment strategy perspective. The following are some of the key points in his note. - EURUSD is range bound missing the trigger of ECB QE (or neg rates) and better US data to drive UST yields higher and hence the USD with it. Eventual ECB activity will mostly drive European bond yields lower slowly negating its advantage versus the USD. - I haven't seen so much backdoor activity since my days in Africa ... (full story)