25 Mar 2015
Morgan Stanley: EUR rebound to likely be temporary – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Morgan Stanley views that with EUR rebounding despite yields heading lower, this divergence suggests that the upside climb of the single currency might be temporary.
Key Quotes
"The current EURUSD rebound is developing despite core yields still heading lower. This is the most significant divergence seen during the EURUSD downtrend over the past year.”
"Again, we believe this implies that the EUR rebound is likely to prove temporary and will eventually provide a renewed medium-term selling opportunity.”
"Compared to this positioning adjustment, the rebound in EURUSD has remained moderate so far, which could be a function of the structural (funding) outflows from the eurozone, keeping the EUR rebound limited."
"Hence, while we would expect some further near-term gains, scope is likely to remain relatively limited.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
"The current EURUSD rebound is developing despite core yields still heading lower. This is the most significant divergence seen during the EURUSD downtrend over the past year.”
"Again, we believe this implies that the EUR rebound is likely to prove temporary and will eventually provide a renewed medium-term selling opportunity.”
"Compared to this positioning adjustment, the rebound in EURUSD has remained moderate so far, which could be a function of the structural (funding) outflows from the eurozone, keeping the EUR rebound limited."
"Hence, while we would expect some further near-term gains, scope is likely to remain relatively limited.”
This content has been provided under specific arrangement with eFXnews.