EURUSD has of late also been supported by higher peripheral bond yields, which attracts investors to EUR assets, hence supporting long EURUSD, – but is this correlation sustainable? History strongly suggests NO.
This begs the question what will drive a change and how big will the impact be. We will go through this and other changes in the FX forecast in the new report Global FX Weekly.
The new paradigm could well be relative growth, please see below picture:
Read the full report: FX Strategy
Nordea