Euro Set for More Gains After Draghi Breaks Bund Spread Support
- Treasury-bund spread narrows to lowest since November
- Euro may rise toward $1.17 by year-end as ECB tapers: Mizuho
Euro Bulls, Bond Bears React to Draghi Comments
This article is for subscribers only.
European Central Bank President Mario Draghi’s suggestion that there is room for paring stimulus has pushed the U.S.-German yield spread below a multi-year support level, signaling further gains in the euro, according to Mizuho Bank Ltd.
A narrower U.S. yield advantage over bunds will help lift the euro-dollar higher, according to Daisuke Karakama, Mizuho’s chief market economist in Tokyo.