Analysts at ANZ Bank New Zealand Limited explained that the USD retained its stronger tone against the euro as anxiety about the outcomes of the Brexit negotiations and Italian budget talks with the EU weighed.
Key Quotes:
“Comments from EU President Juncker hinting that US-EU trade tensions may flare up again in 2019 also undermined euro sentiment. Italian budgetary deliberations rumbled on, but the tone from Germany and EU President Juncker was not alarmist and the rise in BTP spreads vs bunds was limited to around 3bps. Equity markets were pressured by the uncertainty and the ongoing backdrop of Fed policy tightening. The DAX closed off 1.8%, the CAC 40 down 0.9% and FTSE 100 off 0.7%. At the time of writing, the S&P500 was off 1.4% and Nasdaq down 2.4%, with signs of weak iPhone demand weighing on tech stocks (Apple -4.2%). The US Treasury market was closed for Veterans Day. Oil rebounded as the market continues to digest production cuts, with WTI up 0.7% at USD60.6/bbl. Gold is currently down 0.6% to USD1202.8/oz.”
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