The euro fell against all of the major currencies during yesterday's trading session. The euro dropped about 140 pips against the U.S. dollar, and the EUR/USD reached the 1.3825 on Tuesday. The euro fell about 140 pips against the British pound as well, and the EUR/GBP has reached the 0.8730 level.
The currency dropped yesterday as investors became unwilling to boost the euro further due to the uncertainty of U.S. elections and Federal Reserve meetings. Analysts claim that the market feels unease with the EUR/USD trading at the 1.40 level, especially during such an uncertain period, and a technical correction was simply a measure of time. Another reason for the euro's depreciation is speculations regarding an increase in debt purchases by the Federal Reserve, which may cause inflation to accelerate in the U.S. This has increased demand for the dollar, and as a result damped demand for its major rival, the euro. It currently seems that as long as the U.S. economy will continue to provide recovery signals, the euro might fall as a result.
As for today, several interesting economic indicators are scheduled from the euro-zone. Special attention should be given to the German Preliminary Consumer Price Index and the M3 Money Supply report. Both indicators are expected to provide positive figures. This will show that the euro-zone's economic condition is improving as well, and may support their currency.
