Current Euro weakness could intensify.

EUR/USD has been on a slide after reaching a high of 1.12 in mid-July. Economists at the National Bank of Canada analyze the pair’s outlook.

Economic conditions worsening in the Eurozone

A combination of a less hawkish central bank, weaker economic indicators and deteriorating market conditions have certainly played their part in the last two months. Combining our call for continued US Dollar strength and with economic conditions worsening in the Eurozone, we hold the view that the current Euro weakness could intensify. That said, we do see some improvement further out in our forecast horizon.Pound Sterling extends losses amid slower UK wage growth

EDITORS’ PICKS

EUR/USD climbs above 1.0550 ahead of US data

EUR/USD gained traction and climbed to a daily high above 1.0550. Upbeat sentiment data from the Eurozone seems to be helping the Euro stay resilient against its rivals as investors await September Retail Sales data from the US.

EUR/USD News

GBP/USD holds above 1.2150 after soft UK wage inflation data

GBP/USD came under bearish pressure and declined to the 1.2150 area after the UK data showed that wage inflation was softer than expected in August. With the US Dollar struggling to gather strength ahead of key US data, however, the pair managed to stage a modest rebound.

GBP/USD News

Gold holds above $1,920 as focus shifts to US data

Gold gained traction and turned positive on the day above $1,920 after falling toward $1,910 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 4.7% ahead of US data, making it difficult for XAU/USD to gather bullish momentum.