Forex Market Update: Euro Remains Under Pressure Following the Record Drop in 1Q Empl

[B]EUR/USD maintained a heavy tone[/B] after it fell below 1.3900 in early Europe. Dollar supportive comments from Russian and concerns over it recent weakness from other central bankers and government officials forced a move in to 1.3864 lows. Eurozone Q1 employment added to the weaker sentiment after it revealed a 0.8% q/q drop, which was the biggest quarterly fall on record and the Q1 annual rate fell 1.2% y/y and also a record fall. Also adding to the bearish tone was a DIHK survey that said German credit conditions are tightening. Reserve management bids in to 1.3850 absorbed the selling interest, along with some dollar supply on strength as some accounts are still trading off global recovery hopes. The technical picture favors further losses before the pair can make a concerted move higher, although this will be dependent on equity market performance and the dollar direction. Over the weekend German Finance Minister Steinbreuk reportedly said he is not overly excited by the EUR and the oil price rise.