EUR/USD finally slides below the very round number of 1.25 which is USD/EUR 0.80. This is the lowest since August 2012. The new low is 1.2485, but the pair isn’t going too far, not yet.
Quite a few reasons justify the fall, but what was the final straw? The last indicator was stronger than expected wage growth in the US, but it was only one of many figures, and not all were that great.
Update: Chicago PMI beats expectations with 66.2 points – This seems to weigh on the pair once again after it bounced.
Low inflation in the euro zone is certainly a reason but is seems more like end of month flows that are causing the jitters.
Update: EUR/USD bounces back above the round number after the initial fall.
Here are 5 reasons for the fall of EUR/USD, apart from the aforementioned recent figrues.
The shocking moves in Japan are part of the mix: the BOJ added more stimulus and the pension fund added its own share with a change in allocations. USD/JPY is above 112.
In our latest podcast, we review November’s big event and run down the recent ones: