EUR/USD vs. EU-US 10-year spread…hmm…tracking?
5 June 2018/8:49 a.m. ET
Interestingly, we are seeing some positive correlation between the widening 10-year yield in the US over Europe; i.e. 10-year spread. We believe this spread will continue to widen (purple line push lower) in the weeks ahead as the Fed will hike and Europe growth fades, along with rising political risk. So, maybe some money flow out of the Euro and a dent to those structural long bets on the euro we continue to see in the open interest positioning data.