FXstreet.com (Barcelona) – Greg Gibbs, FX Strategist at RBS believes that EUR weakness is possible despite higher Oil prices.
“(Reserve) flow could also start to weigh on the EUR. Although tempering this to some extent may be recycling of petrodollars by reserve managers such as Saudi Arabia that may be banking on higher earnings from higher oil prices.”
“EUR is often thought to do well in oil shocks. Part of the reason for this may be that the Fed often sees higher oil prices as a reason to cut rates and the ECB sees them as a reason to …read more