EUR/USD under pressure in early European trade

EUR/USD has come under further pressure in early European trade, presently at 1.3225, risk aversion to the fore. Some note is being made of a couple of newspaper articles.

One in The Telegraph highlights the fact S&P expects a third of Europe’s junk bonds to default. The other in the WSJ highlights the fact that some of the biggest mortgage companies in the US are stepping up foreclosures on delinquent home owners, which isn’t going to help the property market any.

EUR/USD sits at 1.3225. Technical supports seen lying at 1.3210 and then 1.3190/95, resistance up at 1.3245 and 1.3270/75.

Earlier we had the release of German wholesale prices for March which declined -0.9% m/m and -8.0% y/y, weaker than the median forecasts of -0.3% and -7.4% respectively. The annual decline was the biggest since January 1987.