EUR/USD vs. eurozone-us 10-yr yield spread - supports dollar story?
|Below is a chart comparing EUR/USD (green) vs. the 10-year benchmark yield spread (purple line) between the Eurozone and United States. A risking spread tends to support the euro, a falling spread tends to support the US dollar. Note the consolidation in the spread since March. Given what we perceive is the relatively better position for the US economy vs. the Eurozone, we expect this spread to move lower again, in favor of the US and the dollar. It supports our intermediate-term dollar rally story. Time will tell...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.