Euro stuck in limbo this week because of meetings of the Central Bank to issue currency. While the ECB did not plotting against QE, currency continues to benefit from the desire to diversify its reserves of Central Asia that seek to abandon the dollar in favor of marketable alternatives. There are two interesting moment in the markets this morning. First, interest rates on the short end of the curve continues to decline, while the overnight rate again, more falling. Secondly, the peripheral bond spreads widen again, Irish push a new high this morning, and ten-year bonds traded at 457 basis points higher than the German equivalent. All of these factors in the theory are negative for the euro, but the second did not particularly care about European investors.
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