A Euro On the MoveSeptember 05, 2014
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Following the ECB’s June meeting, we noted (here) a curious disparity in the relationship between the EUR/USD exchange rate and the spread between interest rates in Europe versus the U.S. While the euro had failed to move lower then (as it has in the past), the relationship appears to have reasserted itself more recently.
Meanwhile, any rise in German CDS–which have risen in the past, as the euro has declined– has remained subdued (thus far):