The European currency became a victim of bullish factors combination, which drives the rate down to new 2018 bottom. Euro faced boosted pressure in mid-April after the greenback resumed recovery on all fronts seeing growing US state bonds and possible settlement of US-China trade dispute. Moreover, the European currency was depressed by softer expectations of stimulation shut down, which was related to the sluggish economy and slow inflation.
Along with above-mentioned factors, one more driver came from the political risks in Italy, considering increasing yield of Italian bonds that reached 2%. There are some rumors in the market that two main parties in Italy are about to ask the European Central Bank write off EUR 250 billion debt.
In this situation, the euro-to-US dollar rate showed conditions for euro sales on recovery attempts.
In the near term, it is possible that price may move up after aggressive selloffs. On Wednesday, the European currency has broken 1.18 handle, falling to some 1.1780. As a result, the price can tend to 1.1720 in case of the confirmed break.