EURE/USD sits at 1.3835, pretty much on the days low (1.3831 so far) and this despite reports of sovereign buy interest around 1.3840 a little earlier. Technical supports as aforementioned now at 1.3820/25 and 1.3800/05. I’d expect to hear reports of buy orders down at 1.3800/20 and sell stops just below there, but to be honest haven’t heard of either so far.
The euro is being underminned by a number of factors which include heightened risk aversion (market certainly didn’t like World Bank cutting global growth forecasts), worries over Germany’s burgeoning budget deficit (WSJ article) and caution ahead of ECB’s long-term refinancing operation which gets underway Wednesday. I’m sure there are other things at play, but that’ll do to be getting on with.
