EUR/USD is trading well below 1.20 in the wake of the new trading week. The common currency enjoys no mercy from soft German words about Greece, with the former wanting the latter to stay, nor from the narrowing of polls in the debt struck country.
The stops are hunted down and the change in flows hits the pair hard. While liquidity is extremely low in the very early hours of the new trading week, the falls are very impressive as well.
The pair is down to 1.19 with very choppy trading.
More: EUR/USD: Stay Short For 1.15 as Central Banks ‘Offload’ Euros – Deutsche Bank
Central banks have significantly limited their holdings of euros in Q3. This information hit markets during even lower liquidity and this also hurt the euro.
Last but not least, inflation is certainly poor in the euro-zone: Spain had a price fall of 1.1% in during 2014. Tomorrow we will get German inflation numbers.
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