The euro continues to benefit from carry trade flow, analysts say. Euro/yen has continued pushing higher, recently hitting an all-time high, as global players borrow yen and buy the euro. While these flows are euro supportive, analysts caution that sudden carry-trade liquidation could spark a quick retreat in euro strength.
Another factor to watch is the recent spike in U.S. bond rates.
“If the 10-year pushes above 5.5 percent, it would draw more interest into the U.S.,” Coleman says.
If that were to occur, it would be U.S.-dollar supportive.
Headed into late June, euro bulls have the edge, but major resistance at $1.3680 stalled momentum in late April. That will be a key pivot point to watch in the weeks ahead.
Subscribe to:
Post Comments (Atom)
Post a Comment