EUR/USD Rallies as DAX Declines; Hedges Lifted

At heart, the Euro is a funding currency. Investors are using it as a vehicle to operate in other asset classes. Look no further than the performance of inverse EURUSD (USDEUR on the chart) versus the German DAX since the middle of September 2014 - right after the ECB pushed its interest rate corridor into negative territory.

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DAX IndexecbfedpbocUSD (US Dollar)USD (US Dollar)

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