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EUR/USD below $1.05
The picture of the eurozone and the implications on the euro continue to be tweaked on an almost constant basis as the markets have numerous issues to juggle with. The aggressive nature with which the Greek finance minister and government have decided to tackle the issue of fiscal support from the eurozone and International Monetary Fund has seen them rub numerous people the wrong way.
Over the next four months Greece will need to meet various deadlines for returning funds, and where these will come from remains unclear. The question over Greece’s membership in the eurozone is still not conclusively answered and this has seen faith in the single currency questioned once again.
Apart from the political issues swirling around the eurozone, the region has on Monday embarked on its version of quantitative easing. Purchasing €60 billion of eurozone sovereign debt on a monthly basis has placed a burden on the euro, as the global perception is one of a currency being devalued by its own finance ministers.
Overnight EUR/USD fell below $1.05, but in early European trading it has bounced back above $1.06. Institutions are now once again reassessing targets for EUR/USD and parity in the first half of 2015 is looking increasingly likely.