• EUR/USD declines to 1.1650/40 area.
  • Risk sentiment drops as European markets open.
  • Looking ahead durable Goods Orders, Fed’s Williams in focus
  • The sellers are in control taking EUR/USD to fresh intraday lows in the 1.1650/40

Risk drives EUR/USD

EUR/USD slides to just above Thursday’s 2-month lows  1.1630, as risk aversion lifts the US Dollar

Risk aversion drags US yields lower on Friday and pushes European major stock indices deeply negative.

ECB’s Villeroy stressed that inflation remains anaemic suggesting  the ECB could overrun inflation for some time (if that moment ever comes).  ECB, Board member and Governor of the Bank of Spain Hernandez de Cos said a digital euro is not even a possibility in the near term.

ECB’s M3 Money Supply grew9.5% yoy in August and Private Sector Loans grew  3.0% yoy during the same period. In Italy, Business and Consumer Confidence improved in September to 92.1 and 103.4, respectively.

From the US, Durable Goods Orders for August and speeches by FOMC’s John Williams will be in focus.