Weighed by Uncertainties in the Eurozone, Euro to Edge Lower For a Fourth Straight Session Versus Dollar
The Euro dropped versus its American counterpart on Tuesday amidst rising concerns over Concerns about a Greek bailout, early Italian elections and comments by the European Central Bank governor that reiterated the need for “substantial” stimulus.
The single currency, which was on course for dropping for a fourth straight session, fell 0.4 percent to trade at 1.1125 against the dollar on Tuesday – the lowest level since May 19th. The Euro was weighed down partly due to Greece’s financial situation concerning a deal on debt relief measures.
Greece’s finance minister on Monday said that the deal should be reached at the next meeting of euro zone finance ministers in June in order to help the country return to bond markets.
In Italia, former Prime Minister Matteo Renzi on Sunday stated that Italy’s next election should be held at the same time as Germany’s which is scheduled for September. The comments pulled the euro lower as it led to a selloff in Italian government debt on Monday.
Adding to downward pressure on the Euro, ECB President Mario Draghi repeated the need for “substantial” stimulus amid subdued inflation.
Later in the day, the Euro zone is scheduled to release data on German Prelim CPI while the U.S. is to report on personal income and expenditure along with data on consumer confidence for April, which are all predicted to advance compared to the previous month on a monthly basis.
Sell Stop at 1.11250, Take profit 1.10800, Stop loss at 1.11450