Another Day, Another Fresh Low in EUR/USD
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The exchange rate of the EUR/USD touched lows near 1.2460 today, extending losses of over 1000 pips since late March.
Despite the bargain prices, traders are loath to take up positions in the Euro, as support for the currency appears very thin and arguments for a near term reversal are few and far between.
Bears have 1.19 in their sites, as this is the June 2010 low, but such a large move appears unlikely until more clarity is seen out of Greece, who might get its act together in the upcoming elections on June 17th, according to the most recent polls. If so, a short squeeze could be brewing, but that too looks unlikely, at least for now.
CurrencyShares Euro Trust (NYSE: FXE), an ETF that tracks the spot rate of EUR/USD, is down 0.18 percent today and 5.5 percent in the past month.
Despite the bargain prices, traders are loath to take up positions in the Euro, as support for the currency appears very thin and arguments for a near term reversal are few and far between.
Bears have 1.19 in their sites, as this is the June 2010 low, but such a large move appears unlikely until more clarity is seen out of Greece, who might get its act together in the upcoming elections on June 17th, according to the most recent polls. If so, a short squeeze could be brewing, but that too looks unlikely, at least for now.
CurrencyShares Euro Trust (NYSE: FXE), an ETF that tracks the spot rate of EUR/USD, is down 0.18 percent today and 5.5 percent in the past month.
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