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December 3, 2018 | USD/EUR vs. Italy-German 10-year Spread

Jack has over 20 years experience in the currency, equity, and futures arena. He is an investment advisor who has held key positions in brokerage, money management, trading, and research. Jack is founder and president of Black Swan Capital LLC. He was also founder of Ross International Asset Management (specializing in global stock, bond, and currency asset management for retail clients) and General Manager of Plexus Trading (specializing in currency futures and commodities trading).

Italy is still a MAJOR concern for the eurozone; Italian bond spreads relative to Germany are off their highs (327 basis points) and down to 281 basis points (by no means out of the woods).  Note the tacit correlation between euro and spread direction. Below, the pair is shown as USD/EUR so you can see the visual correlation better; i.e. as the spread widens the euro weakens against the US dollar and vice versa. Spread bet anyone?

120318 euro italy spread.png

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December 3rd, 2018

Posted In: Black Swan Currency Currents

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