EUR/USD drops for third straight day
The euro is struggling despite risk aversion as European sovereign yields fall faster than their US counterparts in the latest round of risk aversion.
The mini-panic episode in late August triggered euro buying as carry trades were upwound but once the market got back into balance, that theme was exhausted. It's all about the ECB now.
Warnings on global growth are spurring talk of European Central Bank easing extending beyond the Sept '16 deadline for the current program.
For me, there isn't a great theme underway in markets besides jitters. Momentum is dominant, I outlined reasons for euro selling yesterday but they're not especially compelling.
I'm closely watching the September low of 1.1090 for a signal about what happens next.
