"A set of soft Eurozone data accompanied by the fiscal dispute between the populist Italian government and the European Commission encouraged market participants to add to their EUR net short positions, which rose further to 46,843," note Rabobank analysts.
Key quotes
"Although the single currency had a strong start to November rallying from 1.13 to 1.15, the rally was quickly reversed as EUR/USD plunged to the lowest level since June 2017. A break below the previous August/October lows is a bearish signal for EUR/USD with the next key technical downside level to watch at around 1.1115."
"The recent increase in GBP net short positions was validated by the sharp fall in GBP/USD from 1.3175 to 1.2828. Sterling plunged as market optimism that the UK could reach a Brexit deal with the EU in November evaporated quickly. PM May faces the enormous challenge of reconciling differences between pro-EU members of her cabinet and hard Brexiteers."
"The Sunday Times reported that four pro-EU ministers may follow Transport Minister Jo Johnson who resigned last week expressing his discontent over Brexit talks. May will need to find sufficient support for a deal with the EU, which hasn’t been yet fully agreed, in parliament."
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