EURUSD Slumps To Worst 3-Week Run In 7 Months

Tyler Durden's picture

Europe ends the week very mixed - as real macro data was dismal but sentiment and hope positive. Credit underperforming notably - especially financials - but equity indices varied from a 2% drop in Italy to a 1.8% gain for Switzerland (which seems like a squeeze given positioning). Italian bond spreads also suffered the most this week heading into the election - gaining 15bps. Portugal was the worst on the week with its spread to Bunds rising 18bps. The real news of the week is the EUR which extends its losses - down 1.5% on the week - to the biggest three-week drop in seven months. GBP weakened the most against the USD on the week - down 1.7% as currency wars progress. Europe's VIX closes at its highest of the year at 20.9% - up over 2 vols on the week.

EURUSD slumping...

 

Europe's VIX closes at the record highs for the year...

 

as FX markets were not pretty on the week...

 

And European stocks very mixed...

 

Charts: Bloomberg