The euro came under further pressure against the US dollar on Monday and fell under the 1.1600 handle. Having initially opened during the Asian trade at 1.1617 the euro was sold in the lead up to Eurozone PMI data, in particular Italy’s, which dropped to 50.00, a 25-month low. Data showed that Eurozone manufacturing shifted down another gear at the end of the third quarter, too.
Meanwhile, Italy remains in focus. The spread between Italy and Germany 10-year bond yields has widened to its most in 5 years, which in itself is weighing on risk appetite this morning, and in turn seeing equities sold off throughout Europe. Italy’s budget concerns continue to heap pressure on the single currency, and the pair now looks like it will break below 1.15 before long.