VIEW: Nomura note that "today's.........>

EURO-DOLLAR: VIEW: Nomura note that "today's Franco-German agreement is a

potential historical moment for the EU - It is one small step for the EU, one

giant leap possible in the months/years to come. But the implications for

EUR/USD are not euphoric yet - details matter, with many unanswered questions

(timing of any issuance could be "a while," perhaps even next year) with the

risks lying towards a more nuanced positive than the initial headlines may

suggest. When it comes to FX - We remain short EUR/USD as there remains a

pipeline of negative, asymmetrical geo-political risks ahead. But the risks are

of a short-term pop higher to test the $1.10 top end of the recent range.

Markets remain net long EUR and we have been witnessing signs of position

reduction, not adding. ETF outflows are also likely to continue to weigh on the

pair. However, if markets learn of a faster timeline of joint EU issuance than

announced in the outline today, that could change the dynamic to a much more

positive story for the periphery and result in a higher EUR."