EUR/USD

Chris Turner at ING highlights that EUR/USD remains fragile as French sovereign debt volatility drives the pair. A report suggesting the French Treasury may shorten issuance duration unsettled investors, who fear reduced pressure on politicians to deliver fiscal consolidation. ING continues to favor a dip in EUR/USD towards the 1.1100/1.1120 area, where stronger technical support may emerge, with French fiscal debates only starting mid-October.

The Euro (EUR) is down 0.16% to near 1.1178 against the US Dollar (USD) during the European trading session on Thursday. The major currency pair faces selling pressure as the US Dollar outperforms due to surging United States (US) bond yields.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that EUR/USD trades heavy below 1.1200 ahead of the ECB Account release. Above-target Eurozone inflation and a firmer growth outlook give the ECB scope for further tightening, limiting divergence with the Fed.

Commerzbank’s Thu Lan Nguyen notes EUR/USD briefly slipped below 1.12 again, with weakness driven mainly by Euro-specific concerns rather than US rate expectations.

The Euro (EUR) is trading flat at 1.1200 against the US Dollar (USD) on Thursday, as the rebound in oil prices and the ongoing tensions in bond markets keep EUR/USD buyers in check.

Danske Research Team highlights that September FOMC minutes reinforced expectations of another Federal Reserve rate hike by year-end, as policymakers remain concerned about upside inflation risks.