Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Oct 05 - 06:55 PM

EUR: 'Everyone Wins If It Falls' - Credit Suisse

By eFXdata  —  Oct 05 - 03:00 PM

Credit Suisse discusses the EUR outlook and maintains a structural bearish bias in the medium-term.

"The ECB’s 8 Jul release of its Strategy Review brought a new commitment to a symmetric 2% inflation target, as well as tolerance of transitory periods where inflation is above target. The market quickly took the message to heart, with euro area 5y5y inflation swaps taking a leg higher on the news, albeit remaining well below the 2% level," CS notes. 

"Still, if the ECB is to generate both higher inflation AND keep rates negative, the EUR will trade at both a real and nominal rate differential disadvantage to the USD. This keeps us structurally bearish," CS adds. 

Source:
Credit Suisse Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2021 eFXdata · All Rights Reserved
!