EUR/USD: the euro could fall to 1.20 if the coalition negotiations in Germany fail (Aviva)

In an intervention on Bloomberg TV, Charles Diebel of Aviva, spoke about the current negotiations for the formation of a government in Germany and its potential consequences on the EUR/USD.

He in fact believes that "the first victim will be the euro" if the SPD votes against the coalition agreement (results on 4 March).

He also said that "this is not an event that endangers the euro itself, but it could be a catalyst for profit-taking, especially given the current market position, mainly long on the euro".

In this context, Charles Dieble believes that the EUR/USD could fall to 1.20.