The euro fell through the November uptrend line early last week and continued to trend lower as it recorded six sessions without an advance, the longest such since November 2016, points out the research team at BBH. 

Key Quotes

“The euro approached the 61.8% retracement objective of the November gains (~$1.1710), which also corresponds to the low from late last month. The technical indicators are moving lower.  The $1.1700 area is important support.  A break could spur a test on even more significant support in the $1.1550-$1.1600 band.”

“The US two-year premium over Germany increased by seven basis points to 2.54%, while the 10-year premium widened a couple basis points.  At 2.075, it is the widest in eight months.”