EUR/USD Falls To Session Lows

The EUR/USD hit a fresh low at 1.3261 despite European equity markets holding decent gains from the trading session’s start.  The pair has fallen a big figure breaking a two day positive run as a slew of global data indicating that the worldwide recession may not be over softened up the pair as the USD and JPY benefited from some risk aversion.  Comments from ECB’s Orphandies warning on the risks of deflation prompting further rate cuts aided the heavy selling of the EUR across the board.

With key economic data and corporate earnings out of the US today keep an eye on this pair as traders have a cautious tone…

“The market is in a wait-and-see mode,” said Phyllis Papadavid, a currency strategist in London at Societe Generale SA. “The euro had recently held up pretty well alongside most of the cyclical currencies like sterling and the Australian dollar in the wake of the stock rally. But people appear to remain skeptical whether this is a start of a sustained upturn in sentiment given the poor macro data.”

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