EUR is under performing most of the G10 currencies - Scotiabank

EUR is weak vs. the USD and underperforming all of the G10 currencies with the exception of GBP as market participants consider the implications of this week’s independence referendum in Catalonia. 

Key Quotes:

"Spanish government bonds are under pressure.  Italy and Portugal are also weak.

Germany-U.S. yield spreads are widening in a EUR-negative manner.

The latest manufacturing PMI data are suggestive of steady growth with figures for France, Germany, and the euro area hovering in the upper-50/60 area.

EUR/USD short-term technicals are bearish while momentum indicators are bearish and DMI’s are providing confirmation as EUR softens toward last week’s lows. 

All eyes are on 1.1720 support. 

A break opens up the risk of a push toward the mid-August low in the mid- 1.16s, followed by 1.1620."