FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, sees the likeliness of further pullbacks in the EUR.
"Events in Portugal will be watched closely today but the released statement last night providing clarity of exposures should help alleviate further investor selling today. Nonetheless, we suspect this adds credence to the argument that net portfolio inflows into the euro-zone may recede going forward."
"April saw the largest net outflow of money market securities on record (EUR 46.7bn) and a substantial net bonds and notes outflow (EUR 31.3bn). Equity valuations also suggest net equity flows may also turn soon as well. The euro remains incredibly stable versus the dollar, but the risks to the downside are building."