Stops hit in quick euro move lower
As European traders headed to the pub, a fresh round of selling sent the euro to a session low at 1.1174.
Friday's low at 1.1198 held an earlier selloff at that level and bounced 20 pips but on the second try, as stocks rallied further, it broke through.
For the bulls, Mizuho is out with a research note on the euro and says it puts 'fair value' in the pair at 1.20 compared to the 1.08 consensus estimate of analysts. In Q3, Mizuho was the most accurate euro forecaster, according to Bloomberg.
"For the euro to fall below $1.08, there has to be something that challenges the integration of the common currency," said Daisuke Karakama, chief markets economist at Mizuho. "The euro is underpinned by real demand as the euro zone is, and will likely remain, the world's largest current-account surplus area."
The latest round of EUR/USD weakness is part of a broader bid in the US dollar that's also putting pressure on cable.
