bullish

Global Rates: What drives European cross currency basis?

259 Views27 Jan 2025 13:26
Podcast
SUMMARY
  • Basis reflects the US dollar scarcity premium, with a more negative basis indicating greater scarcity
  • Positive Euro US dollar basis is primarily driven by short-term tactical cross-border flows, not direct funding dynamics
  • Evolution of relative balance sheet dynamics between the Fed and ECB will be a dominant driver of the Euro US dollar basis going forward

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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