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Pressure mounts on the euro

After a week of outperforming, pressure on the single currency is back in play, with EUR/USD heading back down towards December lows.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Euro
Source: Bloomberg

Strength continues to be used as a selling opportunity for the pair and the recent spike above $1.2500 turned out to be ideal. It’s been one-way traffic since then and a rebound in the greenback has added to the pressure.

The big news in Europe yesterday was of negative deposit rates for Switzerland due to the impact of the Russian economy. This pressure is also likely to affect other European nations as Russia predicts a shrinking economy if the oil price weakness persists.

Greece will also come back to the fore after the first attempt to elect a president failed and the next attempt will be on Tuesday. Earlier this month, EUR/USD printed a low of $1.2247 and that’ll be the level to look out for in the near term. A break of this level would leave the pair vulnerable to accelerating selling pressure.

On the European calendar today, we have the Gfk German consumer climate, German PPI and the European current account. The EU economic summit will also be one to watch.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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