The euro fell back under $1.18 in mid-September, hovering around its weakest level since August 27th, due to growing risk aversion as rising COVID-19 infections could force some countries to reintroduce restrictions of some sort. The European Central Bank decided last week to move to “a moderately lower pace” in its €1.85 trillion PEPP from the €80 billion a month level it has run at since March, amid a stronger near-term outlook for prices and growth. Still, the central bank did not provide any detail about the exact end of emergency support, leaving that contentious decision for December’s meeting. On the other hand, hawkish comments by two Fed officials suggested a slowdown in the US recovery won’t be enough to delay tapering much.