skip to main content
Close Icon

In order to deliver a personalized, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. By continuing to use this site and access its features, you are consenting to our use of cookies. To find out more about the way Informa uses cookies please go to our Cookie Policy page.

Informa pharma logo

Financial Intelligence is part of the Business Intelligence Division of Informa PLC

This is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

financial logo
Search Icon RecommendationsProduct loginProductLogin
Global Search Configuration

US issuers were instrumental in making 2016 a record breaking year for Euro-denominated corporate supply . See previous comment US Euro corp supply to ease in 2017 despite busy start?

That's partly been predicated on push (M&A) as well as pull factors (widening GER/US rate differentials).

Largely thanks to higher US yields, the GER/US 10yr differential is ending the year at its most extreme level since the inception of the Euro, amplifying the allure of Euro markets for US issuers who do not swap the proceeds back to dollars.

But could that relative differential become even more extreme in 2017? Charts suggest they could where our technical team highlight the following;

  • The spread has accelerated the 8yr uptrend via a 22 month symmetrical triangle (completed in August) to reach Monday's 230 Euro-era high
  • Immediate upside drive appears to be losing traction (note bearish daily RSI/Momentum divergence) and given the recent peak's close proximity to the triangle target at 228, potential is seen for a near term pullback
  • However, any dips are viewed as corrective and should hold 212/200 (25 Nov former high/7 Dec higher low), allowing a resumption of the long term uptrend
  • Bullish weekly/monthly studies concur and a sustained clearance of 230 would target 256 (1.618 Fibonacci projection of -89/90 off -33)

Any questions? Speak to a specialist

If you have questions about how Informa Financial Intelligence can assist your business, please fill out the form below and we'll get back to you shortly.

If you prefer to get in touch by phone, please refer to the About section of our website for a list of our offices and contact details. 

General enquiry

Would you like to request sample data or analysis from Informa Financial Intelligence? 

Request a callback
See how our tailored solutions can help you gain a competitive advantage: 
Request a free demo