With trends in UST yields proving highly influential over $-bloc FX trendscurrently, today we highlight that the recent backup in yields does not appear tobe supported by trends in our macro pulse indices (of data surprises). It is alsonotable that our US MPI is tracking below the sort of Q4 strength seen in recentyears. Finally we note that unlike many UST moves recently, eurozone trends arenot supporting this backup in yields. For the current downward pressure on $-bloc FX to be maintained then will likely require stronger US data in comingweeks to support renewed expectations of Fed tapering.
Read the full report: FX Daily
Deutsche Bank