Analysts at Scotiabank explained that EUR/USD remains well supported, wide/widening spreads against the USD notwithstanding.
Key Quotes:
“EUR/USD is””unsurprisingly””showing reduced measured correlations with spreads across the curve on our correlations studies. Correlations are positive but are flirting with statistically less significant levels.”
“The 10Y spread/spot correlation has slipped under 60% today while the 2Y spread/spot correlation has lagged recent and weakened more obviously to less than 40% in Europe. Wider spreads yet may not have that much impact on the EUR.”
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