- With a surge in German yields and lessening fears of deflation in Europe, the euro rallied for a second session, standing near two-month highs against the dollar and yen.
- Data this week suggesting the eurozone might be pulling out of deflation triggered a rise in Bund yields and shot the benchmark 10-year yield to 0.386%, up some 20 bps in two days.
- The euro is now near a two-month peak of $1.1267, having clawed its way back from a 12-year low of $1.0457, when the ECB launched its massive QE program in March.
- Euro +0.4% to $1.1264.
- ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR