FXStreet (Guatemala) – Analysts at Bank of Tokyo mitsubishi explained that the Euro strength early this year has been most prevalent against the pound among the major currencies while against the US dollar it has remained surprisingly stable.
Key Quotes:
“We would have expected the euro to have outperformed more during the current period of intense global risk aversion. That was clearly the case during the previous significant correction lower in risk assets which occurred in the summer of last year.
On that occasion EUR/USD temporarily surged higher from around the 1.1000-level towards the 1.1700-level between the 19th and the 24th August as the S&P500 index declined by around 11%.
The S&P500 has already declined by a similar amount early this year but EUR/USD has continued to trade within a tight range just below the 1.1000-level. The negative correlation between the performance of EUR/USD and global investor risk sentiment has clearly weakened.”
(Market News Provided by FXstreet)