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Analysts at Scotiabank explained that Germany reported a slightly larger than expected trade surplus in Aug (EUR17.2bn), reflecting slower import growth as exports dipped modestly.  

Key Quotes:

“The EUR tone remains soft as  focus  remains on Italian fiscal policy and markets maintain pressure on Italian bonds; EU officials are concerned that Italy’s mix of high debt and slow growth is unbalanced but Italian officials will submit a formal draft plan next Monday as Rome stresses that it will not back down. The face-off may continue to weigh on EUR sentiment in the next few weeks.”

“EUR/USD retains a weak undertone. The EUR’s slide below 1.15 leaves the door open for a retest of the mid-August low in the coming weeks potentially. Intraday signals are leaning a little more constructively, however, with spot nudging off the earlier low as bargain hunters emerge ahead of the Nth American open. We see  resistance at 1.1500.”