EURUSD Edges NarrowlyClose to Recording a New Yearly Low
Ahead of an EU Foreign Ministers meeting today in Brussels to discuss potential tougher economic sanctions on Russia, the EURUSD is currently trading narrowly close to a new yearly low. At the time of writing, the EURUSD is valued at 1.3477 with the current 2014 low registered at 1.3476.
For those who may not be aware regarding why the possibility of tougher sanctions on Russia is enticing investors to sell the EURUSD, Russia is known for being one of the EU’s main trading partners. In fact, some of the recent disappointing economic results in Germany (reportedly 30% of EU GDP) have been attributed towards the conflict in Eastern Europe.
Tougher economic sanctions on Russia would more than likely continue to entice investors towards selling the EURUSD. Tougher sanctions being announced would likely lead to a downside break towards the 21st November 2013 low, 1.3413.
The news of the EURUSD declining in valuation will please ECB President, Mario Draghi who only last week reiterated when addressing the European Parliament that the EURUSD continues to be traded at an elevated level.