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EUR/USD opens the new week at a new low

2018-8-13 11:19:10Market Analysis
EUR/USD opens the new week at a new low

The new trading week has opened to see the EUR/USD further down in a continuation of last week's sell-off, with the major pair plunging to 1.1368 at the opening bell.


Monday sees a limited calendar across the board, leaving markets to drift while Euro traders will be keeping a keen eye out for Germany's Harmonized CPI (forecast 2.1%, last 2.1%) and preliminary Q2 GDP figures (forecast 0.4%, last 0.3%), both dropping early Tuesday morning at 06:00 GMT.


Contagion threats from Turkey's banking sector are pushing traders back into the US Dollar with the Turkish lira collapsing 42% in 2018 and showing no signs of slowing down, while the recent realization that European banks are further exposed to a possible Turkish implosion has seen the EUR take a header, falling over 2.8% in August alone.


EUR/USD levels to watch


With Monday's opening gap taking the EUR/USD into a new 12-month low into 1.1380, the Asia trading session is likely to see the gap close, taking the pair back to the 1.1400 technical level, where selling could begin anew if positive headlines regarding banking sector exposure to Turkey fail to materialize quickly at the outset of the European market session.