EUR/USD has come under accelerated pressure, presently at 1.3905. Aforementioned sell stops around 1.3915 were triggered earlier resulting in a 1.3899 session low being posted.
There’s no one factor behind the sell-off. Rather we’d come a long way in recent sessions and the rally was definitely stalling up around 1.4050 and in need of a shake out. The market was looking for an excuse to book a few profits and found them in a couple of developments.
General risk sentiment has been dented a little by North Korea’s continued incalcitrance and this has underminned the likes of the euro, sterling and aussie.
Meanwhile, as mentioned in the opening comment, the market has honed in on an article in The Telegraph. It highlights the fact that Germany’s financial regulator BaFin has warned that the toxic debt of the country’s banks would blow up “like a grenade” unless they took advantage of the government’s bad-bank plans.
Technical supports for EUR/USD now at 1.3895 and 1.3865.
