EUR/USD had almost recovered a cent off yesterday’s low, as analysts at Scotiabank noted as giving some sense that the Apr/May slide may be moderating as bargain hunters start to emerge.
"Investors appear less concerned by developments in Italy while worries about the soft patch in Eurozone activity earlier this year may be tempered by the Bundesbank’s monthly report suggesting that it saw economic growth picking up again."
"Short-term spreads continue to widen, however, with the 2Y US-Eurozone yield gap nudging out to -318bps today, meaning the USD remains an expensive short for investors even if they do take a dimmer view of the outlook."
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