EUR review

Good news to share today with your euro customers as the single currency has fallen nearly three cents from last week's three month highs. The ECB shoved the euro lower after a central bank official said the bank would crank up its monthly bond purchases from €60 billion a month in May and June due to summer seasonal factors. 

Bigger bond purchases over the short run could have a meaningful impact on the central bank's balance sheet which is inherently negative for a currency. The move also suggested the recent explosion in European bond yields was unwelcome and counterproductive for the region's recovery by making borrowing costs less affordable. 

Markets found another euro sell signal in news of a bigger than expected decline in German investor optimism in May, with the ZEW index slipping to 41.9 from 53.3, more than forecasts of 49.0. The shaky and uncertain shape of Greek finances added to the euro's headwinds.