OctaFX | OctaFX Forex Broker
Sign in
Open account
Back

AUD benefits at expense of EUR - BAML

FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch noted AUD benefiting from the search for yield at the expense of EUR.

Key Quotes

"The outperformance of 30y treasuries in 2014 has been perplexing to markets. Our sleuthing suggests that increased foreign official purchases may be partially responsible for this outperformance."

"A search for yield has similarly benefitted AUD at the expense of EUR in 2014. In fact, 30y treasuries and EUR/AUD have shared a close bond over the past two years (Chart of the Day: 30y UST and EUR/AUD have zero correlation, but identical pattern)."

"The near identical technical pattern despite zero correlation suggests a stronger underlying connection than simply yield. The increased prominence of AUD as a reserve currency since 2012 (as reflected in IMF data) makes reserve portfolios a likely candidate."

GBP/USD taking on 1.68 but still bearish

GBP/USD is trading at 1.6812, up 0.15% on the day, having posted a daily high at 1.6817 and low at 1.6757.
Read more Previous

United States Monthly Budget Statement registered at $-95B above expectations ($-96B) in July

Read more Next
Start livechat