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Hardy: Thoughts on EURUSD as it trades near key 1.1000 level

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This Tuesday, EURUSD has dipped below 1.10 for the first time in just over two weeks. Saxo's John Hardy looks at the factors driving this move.

Firstly, the German IFO Business Climate Index, which has been disappointing and points to weakness in the market. The market is in a better place with regards to risk sentiment, says Hardy, which means it's paying more attention to central bank signals. (The European Central Bank meets on March 10th.)

Secondly, the Brexit issue is no longer supporting the euro, says John. EURGBP upside is now limited, he explains.

Thirdly, a couple of data releases from the US point to the idea that US recovery is still 'ticking along' which is helping USD strength.

John explains why he thinks the break of 1.1000 in EURUSD could continue, perhaps to 1.0750, and possibly lower.