Analysts at ANZ explained that the euro remained under pressure, weighed down by the undershoot in August euro area inflation and ongoing tensions in Turkey.
Key Quotes:
“Month-end rebalancing was also a factor, as well as potentially some position squaring ahead of Monday’s Labour Day holiday in the US.”
“The summer holidays are now drawing to a close so the focus in coming weeks is likely to zoom in on possible European event risk. This includes the Italian budget negotiations, Brexit, Turkey and Sweden’s elections next weekend (Sept 9th), where the Swedish Democrats are expected to perform well.”
“European equities were under pressure and anxieties over Trump’s approach to WTO reform also weighed on sentiment.”
“The DAX fell 1.0%, the CAC 40 was off 1.3% and the FTSE 100 fell 1.1%. The S&P 500 was flat, while the Dow was down 0.1%.”
“The yield on the benchmark German bund fell 2bps to 0.33% while the yield on the US 10-year note was unchanged at 2.86%. WTI oil fell 0.6% to USD69.8/bbl while gold rose 0.3% to USD1203.6/oz.”
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