Traders report concerns over Latvia and it’s ability to payback huge debts owed primarily to Swedish and Austrian banks are helping weigh on EUR/USD in early US trade. The Swedish Krona has weakened sharply versus the EUR today as the cross at 10.34 this morning versus 10.18 earlier in the day, a large move.
Tempering EUR/USD dips are likely bids from central banks as they continue to diversify reserves. Russia bought dollars against the rouble earlier today and will convert about 40% of those dollars into EUR to rebalance their reserve basket.
If EUR/USD works through support at 1.4680, look for bids to emerge toward 1.4650.
