The team coming out with their new report today and maintaining their long euro positions in line with recent trend in spite of Thursday’s excitement.
I don’t see anything as yet technically to undo the euro long bias vs the us$. Fundamentally the euro monetary picture remains tight and therefore positive vs the US$ and GBP.
PIIGs rates have now fallen to new recent lows and the Spanish 10yr paper fell to 3.95% yield on Friday or 125 basis points over UK 10yr paper which is the narrowest spread to Gilts since 2007 or so.
Certainly we have divergent views on the major pairs at present. Price wise the Euro holds her bear trend breakout vs the US$. Possibly its a false breakout. Thursday’s price action was exciting but inconclusive.
The rest of the pairs ill leave to SC’s usual report.
Rich