The desire for risk has suddenly decreased. The Euro has been depreciating against the Dollar and the Yen for two days already after the statement of Mario Draghi about regional monetary union being subject to financial instability. The downgrading of the IMF forecast of the global economy growth pace doesn’t have any positive impact on the Euro. The problems in Europe again are at everybody’s focus and dominate in the news according to world analysts’ claim. The words of Draghi about peripheral countries, having to continue policy of financial consolidation regardless of the growing risks of recession exacerbation, make investors leave for “reliable assets”.
Yesterday the Euro depreciated against the Dollar from 1.2991 to 1.2849.The attempts of the currency to get back above 1.2885 were in vain. And as a result the pair got lower reaching new minimums around 1.2850. The fall might be short term. But anyway the sentiment in the market is negative and recent changes in the technical picture were good for sellers.
Yesterday the Pound depreciated against the Dollar from 1.6045 to 1.5976. The Pound is following the Euro weakness against the background of the decline of interest to risky assets. Thus the currency was under sales’ pressure. If the level of 1.5960 is broken the dip to 1.5828 will look logical.