EUR/USD drops below 2005 low as SNB scraps franc cap

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"This is not what economists and textbooks describe as a deflation spiral, this is a modest price development."
- Steffen Kampeter, German Deputy Finance Minister (based on CNBC)

Pair's Outlook
Following a decision of the Swiss National Bank to abandon the 1.20 limit of EUR/CHF, the EUR/USD pair crashed noticeably on Thursday to reach the lowest level in nine years. Two demand areas, failed to limit the Euro's drop, including one around 1.1730 and second at 1.1640. At the same time, we may see a rebound of the shared currency in the short-term up to 1.17, while market prepares itself for the ECB meeting next Thursday. 

Traders' Sentiment
Market sentiment on EUR/USD pair remains rather neutral, while the overall advantage of bulls over bears is still negligible at 53% versus 47%. Pending orders to are remaining bearish as longs have only 36% of them at the moment (down 10% during last 24 hours).

© Dukascopy Bank SA

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