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FXstreet.com (Barcelona) - EUR/USD is rolling over, having lost not just over 50 pips in a short while since Asian markets opened, but also having broken past an important support at 1.3019, as investors anticipate the collection of negative news coming from the Euro-zone may only get worse before getting better. The pair is at a fresh 1-month low.

According to Investica UK, "the more confident mood surrounding the Euro and risk appetite is unlikely to be sustained for long as economic and political pressures will intensify during the week and, again, selling Euro rallies remains the best strategy. Confidence in the peripheral economies has taken another beating and the most likely outcome is for a further deterioration during the forthcoming week."

Helping to increase the bleak outlook in Europe or perhaps just the excuse to trigger today's sell-off, the Washington Journal carried a headline suggesting Moody's weighing ratings cut tp 114 institutions in 16 European countries.

"The pressure will continue to build during the week with Thursday's Spanish bond auction a key test of investor confidence. There will be strong pressure on the ECB to resume its SMP programme and buy bonds ahead of the auction to stabilise market conditions" the Investica team adds.

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