Is The Big Yield Divergence A Sign The Euro Will Soon Plunge?

Commentary & Analysis

Is it about yield? If so the US is smoking the Eurozone…

If interest yield is the one powerful driver in the currency markets operating in the background, then this chart suggest either the euro is about to take a nosedive, or US short-rates are about to plunge.

The 2-year benchmark spread between the eurozone and the US has been tightly correlated for a long while—that has changed in a big way! Is this a setup to sell the euro against the buck? Stay tuned.

  • ctrade101

    I will love to see what happened!! Keep us posted thanks!!

  • darthfrancis

    yeah as i’m selling euro across 3 trades i hope your right! 😉

  • Joe

    Can you be more specific to which Yield spread you’re referring to… US bonds, carry, corporate/treasury spread?