The euro may gain against the dollar as the Federal Reserve purchases of Treasuries to widen the yield spread between Germany and the U.S. The two-year bonds, Citigroup Inc. said
"With the European Central Bank is still perceived as tougher than the Fed, the euro and the dollar should continue receiving support cyclic differential rates for two years, "he wrote Valentin Marinov, currency strategist at Citigroup in London, in a report released today. "There may be indications that the Fed could accelerate their purchases of bonds in the future if the upward pressure on the perseverance of Treasury yields."
The euro gained 0.1 percent to $ 1.3401 as of 14:21 in London, leaving 1.3 percent in the last two days.
Two-year German government realized 46 basis points more than similar maturity U.S. security, down from 48 basis points yesterday, which was the most since Nov. 22 on the basis of prices closing.
0 comments:
Post a Comment