Wednesday saw Mizuho note that "the.....>

MARKET TALK: Wednesday saw Mizuho note that "the euro is ascendant. No longer

the ugly duckling, no longer doomed to end in failure, this will become a

credible currency of stability and trust. The EU recovery fund will likely

precede a fiscal union in coming economic cycles. With this making fiscal

support something which can be applied asymmetrically to the EU, the Eurozone

will not be destined to lag in times of economic adversity. EU leaders may even

make material progress towards a banking union. European risk assets, and

corporates more broadly, will benefit from inward investment, a more stable

geopolitical outlook, and we expect to see the euro attracting significant

safe-haven flows in the coming quarters. Safe haven status cuts both ways. As a

safe haven, the euro will likely experience more disinflationary forces, with

the euro's macro beta eventually inverting, causing it to appreciate during

downturns. Thus, as investors buy euros, on this fundamental change in the

euro's status, the most effective investments should be those with fixed nominal

returns. The trade - buy EUR/USD, invest primarily in EUR credit, and buy

duration if there is a dip."