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EUR/USD dips below 1.25 – but puts up a fight

EUR/USD may have finally entered the ECB’s comfort zone, even without Draghi’s help. The pair hit a new low of 1.24998 – just 0.2 pips so far, but still a dip.  A strong NFP already sent EUR/USD to a new 2 year low.. And then, no trouble from the services PMI  sent EUR/USD to the 1.24 handle, or USD/EUR to the 0.80 handle. It’s 2012 all over again.

Update: according to the recent data, the  new low is 1.24996 – 0.4 pips below the round  number. According to another source, the low is only 1.25006 – 0.6 pips above the round number.  The pair is really giving a fight here.

While inflation in the euro-zone hasn’t risen on the low inflation, a lower level of the exchange rate for a longer period of time could do the job for Draghi.

The president of the ECB refrained from rocking the boat and didn’t drop any bombs. He just reiterated his commitment to reach his mandate, using non-conventional tools if necessary.

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.