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Forex - EUR/USD slips on reports bin Laden killed by U.S. forces

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Forex Pros - The euro slipped against the U.S. dollar on Monday, dipping to a three-day low, following reports that al Qaeda leader Osama bin Laden was killed in a firefight with U.S. forces in Pakistan.

EUR/USD hit 1.4764 during late Asian trade, the pair's lowest since April 27; the pair subsequently consolidated at 1.4795, slipping 0.05%.

The pair was likely to find support at 1.4631, the low of April 27 and resistance at 1.4877, Friday's high and a 16-month high.

The dollar gained on the view that Bin Laden's death could make the U.S. less subject to further terrorist attacks, as he was regarded as masterminding Al-Qaeda's attack on September 11, 2001.

Bin Laden was killed in a targeted assault near Islamabad, according to a U.S. official. A Pakistani intelligence official described the raid as a "highly sensitive" joint intelligence operation.

However, some analysts remained skeptical of whether bin Laden's death would reduce the security risks facing the U.S.

Meanwhile, the euro was up against the pound, with EUR/GBP rising 0.14% to hit 0.8872.

Also Monday, markets in the the euro zone were to remain closed for a public holiday. Meanwhile, European Central Bank President Jean-Claude Trichet was to speak in Frankfurt while later in the day the U.S. Institute for Supply Management was to publish its manufacturing PMI.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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