Euro Weakens

The EUR/USD pair weakened with more than 300 pips on Thursday and Friday last week as Mario Draghi entered the market with dovish comments. In his press conference he addressed the question about raising rates and according to the ECB, the earliest we could see European rates raise will be the summer of 2019.

This statement was registered by the markets as a reason for a sell of in the single European currency and the Euro went from 1.1850 to 1.1543 against the dollar.

The sell off was also felt in the Swiss franc as it lost close to 200 pips going from 0.9820 to 0.9980, very close to parity.

The market sentiment on the Euro remains bearish and if we can break the level of 1.1550 we could see another leg down to 1.1300.

Chart: EUR/USD D1