The Euro (EUR) is weak, down 1.5% vs. the US Greenback (USD) and seeing its largest in the future decline since early November, across the time of the US election, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Yield strikes in Europe fail to maintain tempo with US
“The outlook for relative central financial institution coverage is pressuring the EUR as aid over the US/China commerce détente forces a continued reassessment of the outlook for Fed easing with markets paring again a minimum of 10bpts of cuts by December.”
“European bond markets are additionally exhibiting losses (yield good points) however are failing to maintain tempo with these noticed within the US. By way of information, this week’s spotlight would be the ZEW investor sentiment launch scheduled for Tuesday. There are additionally a minimum of 10 ECB talking engagements scheduled for this week and we’ll be watching to see if policymakers preserve their dovish bias.”
