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The 'tantrum' in bunds and what it means for EUR trading
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What does a recent rise in bonds yields mean for FX traders? Nick Beecroft, the Chairman of Saxo Capital Markets, likens the volatility in the German bund market to a 'tantrum'. Forex.com's Kathleen Brooks says it's had a huge effect on trading and has caught many people by surprise.
Rising inflation expectations and subsequently higher yields have in part been driving the rise in EURUSD in recent days. However, Brooks says we musn't forget that yields are still historically incredibly low. And Beecroft points to events in Greece that could make EUR sentiment particularly bearish.