EUR: Slide continues in the aftermath of Fed - BBH

Research Team at BBH notes that the euro has fallen two cents from yesterday's high. 

Key Quotes

“Last year's low was set in late March just below $1.0460 and the lowest since 2003.  There is little on the charts until we get closer to $1.0075 and then the psychologically important $1.00.  A move now back above $1.0550 would likely signal a consolidative phase.”

“The US two-year premium over German has jumped to 2.05%.  Many will only see the Fed's hand in this, but look closer, and you'll see that the German two-year yield fell to new record lows near minus 80 bp.  The adjustments to the securities lending program by the ECB and Bundesbank have not been sufficient to ease the pressure in the repo market.  Year-end considerations exacerbate this pressure.”