Cross-currents in EUR rates - TDS

Sandeep Kanihama FXStreet Contributor

Pooja Kumra, European Rates Strategist at TD Securities, suggests that the risk sentiment in EUR rates continues to be driven by two opposing themes of the end of the ECB's QE programme and Italian political risks.

Key Quotes

“This has prevented yields from moving out of the recent trading ranges of 30-40bp.”

“The end of the ECB's expansive QE programme does argue for higher EUR core rates. That said, the move in this direction is likely to be much slower than anticipated.”

“In this environment, we still prefer tactical positioning rather than strategic trading themes.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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