EUR/USD broke to the downside during Friday’s American session and fell to 1.0955, reaching the lowest level since the Brexit referendum results. Near the end of trading, it was holding around the lows.
During the last hours, it has been trading between 1.0965 and 1.0955 amid reports from Germany about a shooting in Munich.
Under pressure
The euro is about to post the lowest daily close against the US dollar since early March. After avoiding a close under 1.1000 during the last four weeks today it appears to have been unable. Most of the day EUR/USD remained quiet, until it broke to the downside, amid a stronger US dollar in the market.
From the level it had a week ago, the pair is a hundred pips lower and is about to post the third weekly decline in a row. It appears to be headed toward a test of post-Brexit lows that lie at 1.0910.
Next week
The main event next week in the US will be the Federal Reserve decision. No change in rates is expected and attention is likely to lie over the statement and the tone of the FOMC. There will be no press conference following the decision.
In Europe, the release of the 2016 stress tests will gather attention, particularly those of Italian banks. Over the rest of the world, the decision of the Bank of Japan appears as one of the events with most potential to impact the currency market.
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