Broad US dollar strength weighing on the euro
Here's what's behind the trade:
- Bond spreads. 10-year T-note up 6 bps, German 10s up 2 bps
- France was downgraded late Friday
- Better risk sentiment has some dipping back into euro-funded carry trades
- Talk of more ECB QE on slower global growth
- EUR/CHF selling
- Goldman Sachs talking about EUR/USD falling 6-10 cents
- Hawkish comments from the Fed's Bullard
- The Fed's Williams saying a rate hike last week was 'a close call'
Bids at 1.1185 are being tested at the moment.