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EUR/USD dropped 750 pips since May
France has fallen a long way, having once stood shoulder-to-shoulder with Germany in leading the eurozone forward. This weekend has seen confirmation that French industry minister Arnaud Montebourg has left his position following his public questioning of Francoise Hollande’s policies. That things have come to a head is hardly surprising, as the back drop of French economic data over the last twelve months has rarely done anything other than disappoint.
At the end of last week I was talking about the EUR/USD breaking below the $1.33 level; I am now referencing its break below $1.32. Since the beginning of May, the currency pair has dropped over 750 pips and, as welcome as a softening euro will be to European manufacturers and exporters, there is a lack of control on its movement. We are now looking back to the intraday lows of $1.31 in September 2013 to offer EUR/USD some support.