A couple of comments on the euro from Japan today (via Reuters)
Mizuho Securities
- euro's latest bounce was not based a positive incentive specific to the currency
- market will likely return to pricing in the potential negatives
- euro will remain on a shaky footing
- "There is still some way to go before potential negatives are factored into the euro ahead of the March 7 ECB meeting."
The March 7 European Central Bank meeting will likely see staff cuts to growth and inflation projections due to the eurozone's sharpest slowdown in five years.
SMBC Nikko Securities:
- "If the Fed were to lower interest rates, it would be natural to assume that the ECB would follow suit. The German 10-year yield will likely fall into the negative if expectations for a rate cut by the ECB increases"
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Huh … I cannot see the Fed lowering interest rates any time soon. Next meeting is March 19/20 … nope. Not then. Following that meeting is April/May 30/1. Unlikely then either …
