XE Market Analysis: North America – Oct 23, 2015

The euro remained a heavy weight in forex markets. EUR-USD extended yesterday’s ECB-induced decline, which at 1.9% was the biggest daily loss since March (according to Bloomberg), and clocked a fresh two-month low at 1.1072 during the Asian session, subsequently lifting in Europe to an intraday peak of 1.1139 on above-forecast Eurozone PMI data, only to tip back toward the 1.1100 mark. Euro crosses were similarly heavy. We still think the risk is tilted to the downside for the euro. The ECB has readied the stimulus spigot, and analysts are quickly revising their forecasts.