All trading involves risk. Losses can exceed deposits.

EUR heading to one-year lows against USD

The single currency has remained under pressure and continued to underperform the G10 complex.

All trading involves risk. Losses can exceed deposits.
EUR
Source: Bloomberg

EUR/USD slumped to 1.3153 and continues to head towards September 2013 lows, which is closer to the 1.3100 mark. Momentum is firmly to the downside and traders seem unfazed by the fact the pair is deep in oversold territory right now.

EUR/USD is being hit from both sides of the equation, with Mario Draghi’s dovish comments and disappointing data for the Eurozone keeping the single currency offered. Some analysts now expect the ECB to look at some sort of QE measures as early as next month.

On the USD side of the equation, solid data all round, including durable goods orders, the Richmond manufacturing index and consumer confidence all impressed.

On the economic front, we have the GfK German consumer climate and German import prices readings due out. Any further signs of weakness will only put more pressure on the pair. For now though, the 1.3100 level is firmly in focus.

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.