Flash: EUR selling in the cards? – BMO Capital Markets

FXstreet.com (New York) - Stephen Gallo at BMO Capital Markets analyzes the impact of EUR selling across the Eurozone.

Key quotes

“We think sharp rises in Euro Area rates will lead to EUR selling opportunities across currency pairs, especially if those rate rises are induced by bond market volatility.”

“Given Euro Area growth remains vulnerable to downside, the degree of plausible bad outcomes for a number of countries within the bloc will be magnified if rates continue to rise. The EUR is still not out of the woods yet in terms of being able to attract yield-seeking capital flows related to a rising rate advantage.”