EUR/USD was resilient ahead of the New York open, although gains quickly attracted selling pressure.

The US durable goods orders data was close to consensus expectations and had little overall impact with a headline decline of 1.7% for April after a 2.7% gain the previous month while underlying orders increased 0.9%.

ECB sources suggested that there was a unanimous view to end quantitative easing in 2018 despite slower growth and concerns surrounding the Italian situation.

The sources suggested headline inflation forecasts could be revised higher in June, although growth projections could be cut slightly.

German bund yields continued to decline which undermined Euro support and contagion fears were fuelled by fresh losses in Italian bonds.

Overall, EUR/USD declined to fresh 2018 lows just below 1.1650 after a convincing break below 1.1700 with evidence of a further liquidation of long positions again an important element.

The dollar index posted fresh 5-month highs despite making no headway against the yen or Swiss franc.