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German companies have manufacturing presence all over the world, including substantial factories in the US. Those factories pay workers in dollars and sell prod
by ceeplusplus 4y ago
German companies have manufacturing presence all over the world, including substantial factories in the US. Those factories pay workers in dollars and sell products in dollars. They are somewhat isolated from the impacts of the EU failures.
German govt bonds are still being purchased by the ECB under QE so it makes sense their yields are suppressed.
- RandomLensman 4y agoLet me phrase it differently: I don't see the need to invoke catastrophic risk to explain current FX moves. I would expect a tail event inferred from vol markets to start with.