EUR/USD: a modest rise in the extended bullish EUR - Scotiabank

Analysts at Scotiabank noted that EUR/USD bulls are ignoring softer than expected data from The EZ and trading on the German/US yield spreads.

Key Quotes:

"EUR has ignored the release of softer than expected money supply data and appears to be finding support from a modest narrowing in the 10Y Germany-U.S. yield spread.

Risk reversals are showing a slight rise in the premium for protection against EUR strength, and Friday’s CFTC data showed a modest rise in the extended bullish EUR."