The euro’s resolve could be starting to crack, as it cleared “psychologically significant” barriers on Tuesday, according to strategists, who now predict a slow grind lower for the currency.
The single currency fell to an 8-month low against the dollar on Wednesday, and hit a 2-year trough against sterling. By close of London trading Wednesday, the euro was trading at $1.346 and 0.79 against the pound, with the latter giving back some gains after a data release from the Bank of England.
The euro’s break below the $1.35 mark means it has now broken out of the “recent suffocating range”, Kit Juckes, global head of foreign exchange strategy at Societe Generale, said in a research note on Wednesday morning.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.