XE Market Analysis: North America – Jan 16, 2018

The euro dropped quite sharply on political concerns in Germany, with some SPD factions reportedly uncertain, or in outright rejection, of proposals to form a grand coalition. This has rattled EUR-USD and euro crosses, which have been aggressively bid in recent sessions. EUR-USD dove by about 70 pips in making a low of 1.2201. EUR-JPY has dropped by some 90 pips from London opening levels. EUR-USD reportedly has sell stop orders clustered around 1.2180-90, levels which have so far remained unchallenged. The dollar was the chief beneficiary of the euro’s dip.