Euro Hits One-Month Low as Confidence Shaken After German Vote
- Trailing stops hit as euro fails to gain from risk-off mood
- Yellen speech, pivotal level at $1.1823 come into focus
German Election Result Sees Euro Moving Lower
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The euro dropped toward $1.1800 as investors continued to unwind long positions, with fresh tactical selling pressure setting in ahead of a speech by the Federal Reserve Chair Janet Yellen later Tuesday.
What started off as a knee-jerk reaction after the German election now appears to have become a broader hit on euro bulls’ conviction. Concern that the European Central Bank may not shed sufficient light on stimulus tapering even at its next meeting is weighing on the sentiment, amid growing speculation that the $1.20 level marks the limit of the central bank’s tolerance for gains in the common currency for now.