European PMIs all painted a picture of the economy continuing to struggle. The euro sold off from the highs but then accelerated lower as news came out that the ECB had appointed administrators to Banca Carige. Despite being a rather small Italian bank, the headline spooked the market as fears of problems in other Italian banks resurfaced, sending the euro down 150 pips to 1.1320 through the day.
Ironically though, once the really choppy price action started elsewhere, EURUSD traded within a tight range and the euro has subsequently rallied 75 pips from the overnight lows. Possibly in a world of bigger and bigger problems the ones facing the Eurozone at the present time are not considered that serious.
