EUR/USD: Patience is a virtue - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that as EUR/USD skips towards 1.14, the fact that it’s doing so despite huge outflows of long-term capital and wholesale abandon of European bonds by foreigners, doesn’t really help.

Key Quotes

“The Euro is going up despite the ECB. Back in December, when EUR/USD trade below 1.06 ahead of fed tightening, 10yearn Treasury yields were at 2.15% and the EU/US spread at 177bp. Today, those numbers are 1.78% and 160bp. A weaker Euro needs something in this mix to change.”