EUR/USD Slips as Risk Aversion Trumps Support from Bond Yields

The euro to dollar exchange rate has slipped to 1.1552, down 0.41%, as risk aversion outweighed support from interest-rate differentials.

This move is seen as a retreat towards 1.1500 support by Scotiabank's near-term assessment, which is neutral to bearish after last week's recovery raised hopes of a move towards 1.1700.

The bank sees major support at 1.15 and limited near-term resistance ahead of 1.1650.

Bond yields suggest that the euro should be firmer, but sentiment is dominating as yield spreads remain relatively well supported.