By: DailyForex.com
During the Asian trading session the Euro slipped lower against the U.S. Dollar as investors digest the results of the latest Spanish banks’ stress test which did little to minimize concerns of a much-needed financial bailout. As reported at 1:14 p.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2821, a drop of 0.3% from late trading on Friday in the U.S. Earlier in the session the pair had fallen to $1.2804, breaking through support at the 200-day moving. Traders are expecting the EUR/USD pair’s 5-day moving average to cross below the 20-day moving average which would confirm a downtrend. If the pair breaks the $1.2775 to $1.2700 range, analysts say that signals another 1 or 2% drop.
On Friday, the independent audit of Spain’s banking sector released the results of the earlier conducted stress test and said that Spain’s banks would need an additional €59.3 billion to cope with Spain’s economic downturn. The government has said however that they would only ask for €40 billion.
The Euro also fell lower against the safe haven Japanese Yen, dropping to 99.84 Yen and close to the 2-week trough struck on Thursday when the EUR/JPY pair hit 99.64. The Yen is under some pressure, however following the results of the Tankan Survey tended to reduce risk appetite.