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EUR/USD Drops Below 1.3360 on Geopolitical Risks

The euro held a three-day decline before data today that may show growth in the region weakened and inflation slowed, supporting the case for additional European Central Bank stimulus.

The 18-nation currency traded near an almost nine-month low against the yen on prospects Russia’s conflict with Ukraine will hurt growth in the region. Ukraine’s hryvnia closed near a record low. The New Zealand dollar held a gain from yesterday after a report showed retail sales increased last quarter by more than economists estimated.

“Europe is at the epicenter of the geopolitical risks, so investors are avoiding European currencies,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York. “The economic data out of the euro area continues to be weak. The euro looks heavy amid concerns about growth prospects and expectations for additional ECB easing.”

Bloomberg [1]

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