EUR/USD at 1.3460 and May Have Finally Cracked

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.


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