EUR/USD has extended losses to 1.4185 so far, closing in on support at 1.4173, the 61.8% retracement of the recent 1.4005/1.4445 range.
It’s a demoralizing end to a week in which EUR/USD was supposed to break 1.4500 and set sail for higher levels, or so the bulls would have had us believe.
Firmer bond yields, hopes that the FOMC can put a halt to its QE policy and expectations that rate hikes could come earlier than the market had previously antcipated are helping support the greenback broadly today. When push comes to shove, it is positioning that is driving the market with traders loaded to the gills with EUR/USD.
