Posts tagged 'EUR'

The dollar-euro repo arb?… Not yet

Well, here’s one answer to a question we’d been wondering about since last week, when the ECB lowered the deposit rate from 0.25 per cent to zero.

We were curious to know whether some EUR-denominated investors would switch into USD short-term markets in a search for yield. Read more

The euro and the “hope” trade

One other thing from Wednesday’s SocGen Hedge Fund Watch that’s worth noting, especially given the ECB’s decision to hold rates steady earlier today:

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Euro-mysticism

Fibonacci analysis alert — the euro punched through $1.3125 on Monday:

The faithful have apparently been waiting for this level to be reached, according to Bloomberg BusinessWeek. It’s, err, the magic Fibonacci 38.2 per cent retracement from a recent trough against the dollar in June to a previous peak in November — presaging a leap towards $1.50. Read more

Dollar signs and European bank stress

Whatever happened to the dollar funding crisis?

If you’ll remember — central banks restarted dollar swap lines in May, after fears of banks’ exposure to bad sovereign debt dried up liquidity in the market. There wasn’t exactly a stampede to use the facilities when they opened, though. Read more