EUR/USD touches a low of 1.1439 on the day, just shy of the low this month
The pair is closing back in on the month’s low @ 1.1432 as the negative risk sentiment in markets is helping to prop up the dollar as we begin the session. The yen is also bid and that is helping to weigh the euro lower as well on the cross.
Adding more to the woes for the single currency is the fact that Italian bond yields are moving higher once again. Italy’s 10-year bond yields are up 4 bps to start the day and that shows that Italy’s budget worries aren’t going away any time soon:
As for EUR/USD, right now support from the October lows should help limit the downside move but I would expect a continued test of that as long as the above market sentiment remains. A break below the support level will open up a slippery slope back towards a test of the year’s low near 1.1300.
It’s setting up to be a pivotal daily close for the pair that will set up how the next trading sessions will look like, so keep an eye out on the move by sellers here.