According to the COFER report, which shows the composition of the foreign exchange reserves, “Since 2009, the EUR’s share of global allocated reserve assets has declined as the ongoing Eurozone sovereign and economic crisis played out. The EUR’s share of global reserve assets has dropped from a little under 28% overall to a just under 24% now. Current holdings remain close to the lowest overall since late 2004”, commented Shaun Osborne, Analyst at TD Securities.
At the moment, the cross is up 0.42% at 1.2859 facing the next hurdle at 1.2888 (MA200d) followed by 1.2890 (highMar.26) and finally 1.2901 (MA10d).
On the flip side, a breakdown of 1.2751 (low Mar.27) would open the door to 1.2730 (low Nov.19) and finally 1.2680 (61.8% of 1.2042-1.3711).