Euro has steadied - BBH

Research Team at BBH, notes that the euro has steadied after approaching last month's low near $1.0850 but it is off 2.4% on the week.  

Key Quotes

“With today's minor slippage, it has extended its losing streak to the fifth consecutive session, snapping the four-day advance seen last week.  Below the $1.0850 are the March lows near $1.0820, and the lower Bollinger Band comes in a little below there.”

“We see two main forces weighing on it.  The first, we have already mentioned, and that is the political calendar and the forces of nationalism.  The second is the widening interest rate differential between the US and Germany.  The two-year spread finished last week near 142 bp.  It closed yesterday near 153 bp.   The US Treasury market is closed today, so the slight narrowing is a result of the small rise in the German two-year yield.   The ECB is expected to announce the extension of its asset purchases next month beyond the soft March 2017 end-date, while the market is more confident of a Fed hike a couple of weeks later.”