Flash: EUR/USD drops - was it fundamentals or politics? - UBS

FXStreet (Córdoba) - The EUR/USD had a remarkable break through 1.37 on Wednesday, according to the UBS analyst team, which was caused by a surprising surge of new home sales in the US and rising political tensions in Russia and the Ukraine.

Key Quotes

"The new home sales, was the first statistic in a long row, which did not show the typical weather distortion of the last months. Part of the USD rally was motivated by investors' relieve".

"Safe haven aspects due to Russia are another aspect that lifted the dollar, even though it did not help the Gold or the JPY".