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Greg Gibbs, analyst at Amplifying Global FX Capital, suggests that the EUR had nothing going for it as it has weakened in a periods risk aversion and has continued to weaken in periods of improving global confidence as well.

Key Quotes

“German yields fell this year as the exit from the ECB’s NIRP appeared further out of reach, encouraging the notion that the EUR might be considered a good funding currency for carry trades.”

“At the same time, the EUR has also appeared to be a risk-sensitive asset, falling as the Eurozone’s economic performance slumped in response to the weaker global demand for its exports.”

“As such, lately, it has seemed that the EUR had nothing going for it. It has weakened in a periods risk aversion associated with weaker global growth, and has continued to weaken in periods of improving global confidence and firming asset markets, attracting sellers seeking a funding currency for carry trades.”