All eyes on EU and US yields - Scotiabank

Analysts at Scotiabank noted that the EUR has steadied with Spanish markets stable and investors focusing on near-term, US-centric headline risk. 

Key quotes:

"Eurozone business, industrial and consumer confidence measures all strengthened in Oct, reflecting the strong, underlying tone of growth in the region. However, German regional CPI data for Oct looked soft, suggesting the national report this morning will continue to reflect weak inflation trends. 

"German retail sales rose 0.5% in the Sep month, in line with expectations. Spanish GDP rose 0.8% in Q3, in line with forecasts. Eurozone-US 2Y spreads remain near record (EUR lifetime) levels at -234bps."

"Although the USD has not reacted to wide and supportive yield spreads in the past few months, the massive differential remains an impediment to the EUR improving."