Euro, sterling in retreat mode to start the new year ...Middle East

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Euro, sterling in retreat mode to start the new year

It's tough to pick at support levels for EUR/USD at the moment and that is the danger for the pair as any further drop could well be exacerbated by the lack of supportive elements.

A hotter dollar continues to make a case for a downside move in the pair, especially with the selloff in the bond market in December. That's certainly a spot to be mindful about even if there might be a short-term retracement in January. 10-year yields in the US are down 4 bps to 4.536% today while 10-year yields in the UK are down 1.5 bps to 4.558% currently.

    This article was written by Justin Low at www.forexlive.com.

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