EUR, USD flows: EUR bounces and stabilises after money data

Eurozone money data came in on the strong side of expectations, with M3 showing the first positive y/y growth since June. However, household loan growth fell again, and is the lowest y/y growth since 2015. Even with the improvement in M3, money growth remains very weak by historic standards, and the monetary squeeze is still likely to have more impact going forward. EUR/USD had bounced a little this morning ahead of the data, but has seen little reaction to the money data. We may now be establishing a new 1.08-1.09 range ahead of the FOMC next week.