The euro fell to a seven-month low in Asia and had the biggest fluctuation of any currency on concern the rejection of a proposed European Union constitution will slow the region’s economic integration…………
Against the dollar, the euro fell to $1.2370, the lowest since Oct. 14. It bought $1.2390 at 2:05 p.m. in Tokyo from $1.2475 late in Asia yesterday, according to electronic currency- dealing system EBS. The euro will probably decline toward $1.22, Jacobs said.
Update I: Now it’s hit $1.2371.
The euro’s initially muted reaction to the French vote on a holiday-thinned Monday turned into a sharp fall when it broke below key $1.2450 levels, pushing as low as $1.2371.
Now it’s at 1.2315, and this is also becoming a dollar rise story as the yen is also begining to fall against the USD.
“The Euro lost support at 1.2450 in Asia on Tuesday and this pushed the Euro down to a low of 1.2315. The convincing break below 1.25 against the US currency will reinforce negative Euro sentiment and will raise speculation over a move towards the 1.20 level in the medium term.”
To be continued.