International Netherlands Bank stated in the report that the undervaluation of the euro means that if the USA non-farm employment data is strong, the euro's downside may be smaller than that of other G10 MMF. With the differentiation of Forex and short-term interest rate dynamics, the situation of the euro being undervalued has intensified. Last November, when the EUR/USD two-year swap spread last reached the current -175 basis points, the euro traded around 1.05 against the dollar, while it is currently around 1.0305, indicating that the market is digesting the "substantial negative factors" affecting the euro. If the employment data is strong, the euro is likely to be impacted less than other currencies.
荷兰国际：非农公布后，欧元表现或优于其他G10货币
International Netherlands: After the non-farm employment report is released, the euro is likely to perform better than other G10 MMF.
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