Euro Slides Amid Thin Trading

Euro Slides Amid Thin Trading

The euro (EUR) dropped for yet another day against the US dollar (USD) amid thin trading due to the Easter holidays. The single currency slid to 1.2770 before rebounding to 1.2787. The last few weeks have seen the pair search for a new lower norm as recent developments in the European banking sector have emerged. The hardest hit were the European banks of the periphery as investors fear that a depositor haircut, as happened in Cyprus, could be a template for bank resolution in other troubled countries.

The Australian dollar (AUD) continues to slide against the US dollar (USD). The Aussie is moving above 1.0398 but could move into lower lows if it does not overcome its downward trend line.
The Canadian dollar (CAD) continues moving sideways against the US dollar (USD) at around 1.0170.
The British Pound (GBP) stabilized its gains against the US dollar (USD) maintaining a level around 1.5194
Weekly option volatilities for the EURUSD picked remained around 10.25 as fear in the markets subsides and option premiums are kept constant.