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EUR/USD Drops to 1.2780 as U.S. Dollar Strengthens

The euro languished near a 14-month trough early in Asia on Thursday after surrendering overnight to stop-loss selling as a major chart bulwark at $1.2800 gave way.

The common currency fell as low as $1.2774, nearing the 2013 trough of $1.2740. A break there will take it back to levels not seen since late 2012.  That helped the dollar index break above 85.000 for the first time since July 2010. It peaked at 85.091 before settling at 85.084.

The greenback also pressed higher on the yen to reach 109.22 and looked set to re-test last week’s six-year peak of 109.46.  Keeping euro bears on the hunt, European Central Bank President Mario Draghi said on Wednesday the bank will keep monetary policy loose for as long as it takes to push ultra-low inflation back up towards the two percent level.

CNBC [1]

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