EUR breaking lower

Having been moribund for the past few session, the euro has broke lower this morning, below 1.35 and through the previous low of the month at 1.3491.  This has happened ahead of the US CPI data due later today. As we pointed out in the daily today, EURUSD is increasingly being driven by US rate expectations as the ECB’s hands are seen as being tied by the fact that most policy option have been exhausted. There are no particular catalysts being cited for this latest move, but it is perhaps indicative of the fact that if pushed, it does not take much to push these markets at the institutional level.

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