Mid-Day Report: Euro Remains Broadly Pressured But Passing the Torch to Sterling Euro remains broadly weak against major currencies, as pressured by a WSJ report that the European bank stress test "understated some lenders' holdings of potentially risky government debt." EUR/USD's break of 1.2776 minor support suggests that recent recovery is finished and the pair is possibly heading back to 1.2587 low. EUR/JPY is also showing sign that it's resuming recent decline for 105.42 and below. One thing to note is that while EUR/GBP did drop earlier today, strong selling is seen in Sterling into US session while helps that cross recovers. Both GBP/USD and GBP/JPY have indeed broken recent low to resume down trend. We'd probably see Sterling taking over Euro as the main victim in current risk selling. http://www.actionforex.com
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