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Euro Zone Interest Rates Are Set To Move Higher Still

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LONDON (AFX) - The euro regained ground against the dollar after further
comments suggesting that euro zone interest rates are set to move higher still,
this time from Bundeskbank president and European Central Bank board member Axel
Weber said the ECB will continue to react "appropriately" to any perceived
risks to price stability, and stressed that current interest rates do not pose a
barrier to economic growth in Germany.
"The broader theme for the currency market should remain one of rising
yields in Europe and Japan relative to the US, and combined with increased hopes
for Asian currency appreciation, this should help to undermine the dollar," said
UBS analyst Daniel Katzive.

TTRTRates? Rate hawkishness continues to build which leaves the question: how long can sterling retain its high valuation?

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For sure, look what's happened to the Euro swaps curve over the past month (see attached) - the market is ever more confident of rate increases and expects them to be higher than they did a month ago - a couple of 25bp hikes priced in within the year already with more to come further out...but of course, this is only relevant if you're funding in euros...



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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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