The EUR/USD pair tested the upside during Friday's session, but did not manage to recoup the broken sideways range. The poor German Ifo was not seen as hurting euro sentiment. In the afternoon the US Uni Michigan confidence rose slightly, it was unexpected support the USD. The pair fell back sharply towards the end of European trading at remained at the 1.2120 zone.
This morning a negative feedback was felt by the euro as the French government was punished during regional elections over the pension reform. EUR/USD fell to new short-term lows at the 1.2080 area this morning.
ČSOB - Investment Research