The EURUSD pair continued its decline on Monday. Although this decline was less pronounced during the morning and afternoon sessions, overall the euro shed 0.4% against the dollar to close the day at 1.1274. The single currency is experiencing downside pressure on account of the ongoing yellow vest protests in France.
Moreover, the euro also took a hit after Italian Deputy Prime Minister Luigi Di Maio announced that the Italian government intends to block the extension of Russian sanctions, given that Russia’s counter sanctions have been detrimental to Italian business. These were interpreted by markets as disunity within the EU, which intensified the euro’s decline, which has been on a continuous downwards trajectory since the 31st of January.
On Tuesday morning, the EURUSD pair countered the previous day’s decline with a weak rise of 0.05%. In theory, there is still room for the euro to fall. The EURUSD is close to the lows of November 2018, so there’s still a chance of dropping as far as 1.12. However, if we get some positive news for the euro, it has the potential to grow to around 1.13 – 1.135.