Today is Thu, August 24, 2017 8:45:21 GMT
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Currencies EUR USD News Euro (EUR) Approaching 6-Month Lows!

Well it was only a matter of time before the Euro began to trade lower as hope that a solution to the debt crisis was replaced by reality of the difficulties such a task requires.  The Euro is back close to near 6-month lows vs. USD and is fast approaching lows from the beginning of the year.

Sometimes the fear over the uncertainty is greater than the reality of the situation, but recent actions are emblamatic of a lower-valued Euro.   The question though that needs to be asked is how long the positive correlation of the Euro to stocks and commodities can continue and if a de-coupling of the “risk-on trade” would be a net positive for world markets.

I think we can see a scenario where the Euro can decrease in value as stocks rise, though that day may not be today.  But for now, I see the Euro moving lower to the 1.30 level which could provide temporary support if the US FOMC meeting hints at further monetary easing.