source: HSBC
"Many are asking why EUR-USD is not moving lower more quickly. We have Spanish yields blowing out, examples of heightened European political risk, and days when equities fall quite heavily, yet EUR-USD has not collapsed. Our view is that for the moment, both the US and the Eurozone are stuck in a policy stalemate. What financial markets want is either more liquidity or self-sustaining growth but at the moment we have neither." David Bloom, Global Head of FX Strategy & team at HSBC.
"Many are asking why EUR-USD is not moving lower more quickly. We have Spanish yields blowing out, examples of heightened European political risk, and days when equities fall quite heavily, yet EUR-USD has not collapsed. Our view is that for the moment, both the US and the Eurozone are stuck in a policy stalemate. What financial markets want is either more liquidity or self-sustaining growth but at the moment we have neither." David Bloom, Global Head of FX Strategy & team at HSBC.
