Euro Slumps on Risk Aversion and Spanish Banking Woes

US markets are closed today due to Hurricane Sandy's impact on the north-coast. Despite thin trading volume, the EUR/USD pair continues to gain bearish momentum. The dollar is benefiting from risk aversion, as local share markets and US futures decline.

The main event of the day will be Spain, where PM Rajoy will address the country's bad banks at 17:00 pm local time. This development is likely to influence market sentiment and potentially weigh on the euro.

The EUR/USD pair currently trades below 1.2900, with its short-term resistance around the 20-period Simple Moving Average (SMA) lying lower.