The Euro (EUR) the EUR/USD fell from the lofty 1.2600 heights overnight as Moody’s downgraded the outlook for the European Union. Also hurting was a German article stating the ESM was illegal. This is ahead of the ECB meeting on Thursday where expectations are mounting for a big announcement. Caution should be employed given last month’s disappointment that led to a 300 pip fall for the EUR/USD post ECB meeting.
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