Here is the thing- continued rotation out of the CAC and DAX risks further downside for EUR/USD

The weakest major European stock market on Friday was the CAC. The index closed 1.17% lower, but it was not alone because the DAX handed back 0.76% and the beleaguered FTSE 100 closed 0.84% lower, as noted here a little earlier this morning. The CAC 40 and DAX both suffered further outward rotation, as noted here for most of last week, after the US election result. The inference of that being that investors in European stocks are pulling out and heading back to the US, as the markets there set fresh records each day. If you just stand back you can see the contrast is as clear as day over recent sessions. The other thing to note, which is important- this rotation also infers selling Euros to buy Dollars in oder to grab those US stocks. That is a clear negative for the EUR/USD and that is why it fell again on Friday. The reader is once again reminded of the current 2024 low in the EUR/USD at 1.0601 (set on April 16), because unless this rotation stops, that may not be the low for the EUR/USD by the time Santa drops his sack down your Chimney. It will not be good news for the CAC and the DAX either. Hence the price action across the European stock markets will be crucial from now on. The EUR/USD range so far today has been covered by 1.0704 to 1.0728. It is right now at 1.0718