Euro’s Slide Takes Currency to ‘Line in the Sand’ for Bulls
- Prospect of monetary easing, risk aversion weighs on currency
- Minutes from Fed meeting could spur declines, says Saxo Bank
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The euro is on the cusp of breaking new lows against major global peers, weighed down by the prospect of prolonged monetary stimulus from the European Central Bank and a rush for haven assets.
The common currency fell to as low as $1.1694 on Wednesday, the weakest since early November, to test the key $1.17 handle. That’s a level that capped the euro’s decline in April and which Nomura International Plc strategist Jordan Rochester is calling a “line in the sand” for euro bulls.