EUR/USD Drops Below $1.35

The euro weakened below $1.35 for the first time since February, suggesting the unprecedented steps taken by the European Central Bank may be working.

The measures taken last month by ECB President Mario Draghi included becoming the first major central bank to cut the deposit rate to below zero while lowering the benchmark refinancing rate to a record 0.15 percent. He said on July 14 that currency appreciation is “a risk to the sustainability of the recovery.”

The euro slid 0.2 percent to $1.3494 as of 9:25 a.m. New York time. It reached $1.3491, its lowest level since Feb. 6.  The single currency will drop to $1.3212 before trending as low as $1.2685, Bank of America Corp. technical strategist MacNeil Curry wrote in a report on July 16, a level last touched in November 2012.


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