EUR/USD collapses below 1.25 – bounces back
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EUR/USD collapses below 1.25 – bounces back

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.

More:  EUR/USD: Larger Triangle; GBP/USD: Wave-5 Target – Nomura

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.