EUR/USD: Selling Accelerates, Bunds Hammered

EUR/USD has accelerated its losses, falling into the high 1.3280s. German bunds are being hammered simultaneously, so dealers suspect the selling may be fixed income related. Spreads between US 10-yr notes and comparable bunds are nearly 4-basis points tighter today, a factor that is usually EUR supportive, but not until the dust settles. Bids are layered down through 1.3275 while stops re-emerge under 1.3270.