If we accept the hypothesis that yields are not anymore the key drivers of FX rates, we also should point out that the two main drivers of the EUR Basic Balance improvement are FDI and Portfolio Investments as the CA is relatively stable.
Monday, January 29, 2018
USD Value and Rate Differentials
Thank to ForexLive directing our attention to a Business Insider Australia article about things effect and affected in the past the EUR/USD rate. Thre are two great charts, one is about the yield differentials and FX rates, the second one is on EUR area Basic Balance:
If we accept the hypothesis that yields are not anymore the key drivers of FX rates, we also should point out that the two main drivers of the EUR Basic Balance improvement are FDI and Portfolio Investments as the CA is relatively stable.
If we accept the hypothesis that yields are not anymore the key drivers of FX rates, we also should point out that the two main drivers of the EUR Basic Balance improvement are FDI and Portfolio Investments as the CA is relatively stable.
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