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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that he would also expect the euro to perform well on any upturn in financial market volatility.

Key Quotes


“As it is a US-centric risk event and given the desire for investors for liquidity, the euro would likely benefit. Furthermore, the emerging market turmoil in the summer benefitted the dollar and the euro suggesting the euro has taken on a greater safe-haven role now that periphery bond markets are more stable.”

“It is certainly debatable whether the euro should be deemed a safehaven. There are numerous event risks on the horizon and periphery bond market stability in the euro-zone in circumstances of fears of default in the US is surely questionable.”
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