There have been short-term abnormal fluctuations in interest rate spreads recently
For the euro, two sets of interest rate differentials inside and outside are still used to observe changes in the exchange rate.
The euro exchange rate has always been under obvious pressure. In principle, it is because of energy security issues. Europe's attitude towards Russia...
Globally the theme of Central Bankers tightening monetary policy is well captured with German yields hitting new yearly highs. Interest rates are rising all across the Globe and emerging markets need to make note of this. Yields could be testing 1% in the coming months if crude continues its upturn.