Intraday Market Thoughts

Why Yields Matter now?

by Ashraf Laidi
Jul 8, 2013 16:58

Bond yield differentials do not always matter in currencies. But when the divergences grows out of control, the implications for FX are formidable. As ECB's Draghi gives guidance that rates shall remain low for an extended period of time and Fed's Bernanke signals a reduction in the rate of asset purchases, such contrast in Fed & ECB assessement is rare but sufficient for guiding EURUSD traders. Full Charts & Analysis here

 
 

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