Euro Update – 13/09/2017 (11:10am) – by Arjun Lakhanpal

Euro Update – 13/09/2017 (11:10am): EURUSD was caught in the crossfire yesterday as EUR crosses came to the fore. The USD was broadly supported throughout the day as rising equities and UST yields saw further liquidation. EURUSD broke through 1.1950 support, eventually trading as low as 1.1925 after the UK CPI saw EURGBP break 0.9000 – EURGBP longs had been a high consensus long. Then EURJPY took hold with EU FI catching up with the US, the pair breaking to new YTD highs above 132.00 – EURUSD trading back to 1.1980. FI and equities have retreated somewhat in Asia leaving EUR trading in a listless manner. Having been bullish the USD for the past 48 hours, many would look to cut tactical longs ahead of the key US CPI print tomorrow – the risks are far more balanced now.