Europe opened in red, EUR tumbles

FXstreet.com (Edinburgh) -The Fed’s QE tapering is taking centre stage again on Monday, as investors remain cautious ahead of the results from the US Durable Goods Orders during July. The likeliness of the Fed scaling back its monthly bond buying in September keeps buyers at bay so far, dragging the main European indices lower. At the moment the IBEX35 is the worst performer, down 0.84% and followed by the CAC40, 0.60% and the DAX, 0.32%. Markets in the UK remain closed due to bank holiday. The EUR/USD is prolonging its correction lower, testing session lows around 1.3365/60 as risk-off trade prevails amongst investors.

Bourses in Asia closed mixed after poor data from the US economy on Friday re-emerged hopes that the Fed could taper QE later than September. Upbeat comments from the Chinese economic growth also collaborated in the sentiment. The NIKKEI225 retreated 0.18% while the Shanghai and the Hang Seng advanced 1.90% and 0.65%, respectively.