EUR tumbles 1.5% on the day – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is weak, down 1.5% vs. the US Dollar (USD) and seeing its largest one day decline since early November, around the time of the US election, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Yield moves in Europe fail to keep pace with US

"The outlook for relative central bank policy is pressuring the EUR as relief over the US/China trade détente forces a continued reassessment of the outlook for Fed easing with markets paring back at least 10bpts of cuts by December."

"European bond markets are also showing losses (yield gains) but are failing to keep pace with those observed in the US. In terms of data, this week’s highlight will be the ZEW investor sentiment release scheduled for Tuesday. There are also at least 10 ECB speaking engagements scheduled for this week and we’ll be watching to see if policymakers maintain their dovish bias."

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FXStreet Insights Team

FXStreet

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