The Euro slumped to 13-month lows after the fall of the Turkish Lira
On Friday, the Euro continues to fall against the dollar, updating the 13-month lows around 1.1430. The pair easily broke through the barrier of 1.15, which acted as strong support since the beginning of summer. So the loss of that level was a strong bearish signal, and attempts recovery while vigorously suppressed by the sellers.
First of all, the single currency pushing the strong dollar, which is still with a big advantage ahead of its competitors from a trade war due to its status of a protective asset. Of course, the dollar also gains support due to the continuing divergence of the courses of monetary policy because the ECB still does not want to rush with increasing rates.
Moreover, the pressures on the Euro has added to the concern expressed by the ECB in relation to the risk for the regional banks by the situation in Turkey, where the Lira has fallen to record lows. And at risk among other creditors were the giants such as UniCredit and BNP Paribas who have a major operation in the troubled country.
Thus, in the near future traders will be watching the developments around this factor, and signs of recovery in the Lira will let the single currency go into recovery mode, especially if the USD bulls out of steam after rally.
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