German-US spreads are widening
Differences and exchange rate does not diverge for long.
The market is loaded on the euros due to waiting for Draghi will announce curbs on the QE and because of the improvement of the Euro area, the outlook.
But this impulse to a certain point run into the harsh reality of the bond market. The purchase of a US 2-year yield pays 1.56% while German 2-year schatz yields negative 0.73%.
That the widening of spreads today to the widest since the year 2000.