FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that the euro started the year on a softer footing against the US dollar despite the pick-up in global investor risk sentiment. Key Quotes: "The euro has recently tended to outperform against the US dollar during periods of financial market instability which have prompted liquidations of long US dollar positions. If investor concerns over China intensify further in the week ahead it could help to lift EUR/USD. However, the ongoing decline in commodity prices and weakening outlook for growth in emerging economies also increases the likelihood of further ECB easing. Inflation in the euro- zone has already disappointed in recent months. Short-term euro-zone yields are moving further into negative territory weighing on the euro. Fed rate hike expectations are also being pared back driven by external concerns. However, the release of the latest payrolls is expected to remain supportive for a further tightening of Fed policy and a stronger US dollar. Employment is expected to have remained solid in December and earnings growth is likely to have accelerated further." For more information, read our latest forex news.