By Jeremy Boulton — May 22 - 05:35 AM
EUR/USD has traded mainly within 1.05-1.10 since start of 2023
From Sep 2022 until April this year traders continually bet on pair rising
The 1.5% interest rate gap weighing EUR/USD is expected to widen this year
One-year forward swap has risen from around 150 points toward 200 points
Reduced FX risk is likely to encourage sellers who can bank the carry
Risk appetite in wider fin markets is robust which suits carry trades
Source:
Refinitiv IFR Research/Market Commentary