Why Is The Euro Rallying On Risk-Off?
Zero Hedge -

Submitted by Strategic Macro

Normally in a risk-off world, the USD and TSYs would rally and equities and the Euro would fall. The Yen usually rallies due to capital being repatriated.  

But we have seen in early August that the Euro has rallied on risk-off. That can only be flow and position unwind driven.

So which flows and positions are being unwound? Aside from all of the other financial assets like ABS, corp debt, equities, if we just look at Treasuries we might get an answer.

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