GBP fell through 1.34 after factory output posted its largest monthly fall since October 2012, while the Euro has pushed higher amid reduced Italy fears and ahead of ECB meeting.
Large speculators holding tight with large AUD short; GBP, EUR, and oil net-longs all continue to be trimmed, copper longs remain winners.
Turkish Lira outperforms after the Turkish Central Bank surprises markets with a 125bps rate hike, while EUR buying continues ahead of the ECB monetary policy decision.
Italy has got a new government! So much wow! This is fading the EUR risk premium which has become present since mid-March. Indeed, we judge that a full reversal of Italian worries might boost EUR/USD […]
The single currency continues to fall to fresh multi-month lows with the upcoming Italian election being seen as a referendum on the EUR.
Risk-off is a broadly used term, but strengthening JPY is a hallmark of risk-off, and is best seen via against the EUR.
The Euro and the Dax saw a muted reaction following the release of the latest Eurozone trade data. The trade surplus widened to EUR 26.9bln from EUR 18.9bln in February.
Investors unnerved with the incoming anti-EU governing coalition set on a potential collision course with the EU, subsequently weighing on EUR and supporting the JPY.
The Italian Five Star Movement and the Northern League moved closer to forming a government over the weekend adding a fresh layer of EUR risk.
As the US Dollar continues to strengthen, the Euro, the British Pound and Gold are all under pressure.