FXstreet.com (Barcelona) - As the deterioration of the Euro turns into a harsh reality, now having accumulated over 7 weeks of progressive falls against its main rivals, EUR/USD seems to have found a temporary bottom since early last week, resisting to move much lower than 1.3050/75 downside hurdle. Current price: 1.3125. Sharing his view, John Kicklighter, who is Currency Strategist at Daily FX gave us an overall snapshot of the Euro fundamentals: “If we were to measure the euro’s performance against its benchmark counterpart (the dollar), we could be led to believe that the fundamental backdrop changed very little. However, the inherent stability derived from the liquidity of this pair means this is a poor indicator for the actual health of the shared currency”. John added:“A better measure is EURCHF or EURJPY. From these pairs, we can see the unabashed efforts to avoid the risk associated to the euro. And, this past week, the risk for this unit certainly increased. In addition to Portugal’s downgrade, Ireland’s necessitating taking Allied Irish under government control and the passage of the more stringent Greek budget; we were met Friday with speculation from the Greek media that officials are moving towards a debt restructuring when the immediate support of the EU/IMF bailout is set to expire”.

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