4 Jul 2013
Flash: Political uncertainty takes a toll on the euro this week – BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the dreaded return of political uncertainty in Europe has taken a toll on the Euro.
They begin by noting that a political crisis in Portugal threatens to steal the region's lightning rod from Greece, which has a few days to meet the latest the terms of the next aid tranche. They see that this was seized upon by the euro bears, giving added incentive to push the euro convincingly through the $1.30 level Tuesday. They write, “The euro traded on both sides of Monday's trading range and finished the North American session below Monday's low. Technically this is a bearish outside down day that seems to have ended the 4-5 day consolidative phase. Though the euro has bounced a bit after trading as low as $1.2925 today, we continue to suggest $1.2850 as a near-term target.”
They begin by noting that a political crisis in Portugal threatens to steal the region's lightning rod from Greece, which has a few days to meet the latest the terms of the next aid tranche. They see that this was seized upon by the euro bears, giving added incentive to push the euro convincingly through the $1.30 level Tuesday. They write, “The euro traded on both sides of Monday's trading range and finished the North American session below Monday's low. Technically this is a bearish outside down day that seems to have ended the 4-5 day consolidative phase. Though the euro has bounced a bit after trading as low as $1.2925 today, we continue to suggest $1.2850 as a near-term target.”