Why is EUR/USD so resilient?
This is one of the questions the most often asked among the traders these days. According to RBS, the stubbornness of euro’s bulls may be caused by the news that American company General Electric has agreed to pay $17B for the energy assets of French company Alstom. The deal was given final approval by the French government on Monday and may involve a large flow from USD to EUR.
In addition, the rise in US yields remains contained as the market presumes the data strength has limited impact on the pace of US policy adjustment.
US 10-year Treasuty yields (Bloomberg)