EUR rise unsustainable – BTMU

FXStreet (Barcelona) - The Research Team at Bank of Tokyo-Mitsubishi UFJ, remain of the view that the current rise in eurozone yields and the EUR is unsustainable.

Key Quotes

“The euro has staged a rebound over the last week supported by a pick-up in euro-zone yields. The German bund yield has increased sharply over the last two trading days, although still remains close to record lows.”

“The ECB’s aggressive easing is likely to continue to weigh on euro-zone yields and the euro as yield spreads remain unfavourable. At the current juncture we are more inclined to view the recent rise in euro-zone yields and the euro as unsustainable.”