EUR/USD slid 0.25% to $1.2883 at 9.00 am (London time), as Greece still weighed heavily on the currency pair.
The Greek political deadlock continued for the eighth consecutive day, with President Karolos Papoulias due to hold further talks with other political parties and try to form a government. If no agreement can be reached by Thursday, fresh elections will be called for June. Opinion polls have indicated that the Syriza party, which has rejected the IMF/EU bailout deal, will win a repeat election and give Alexis Tsipras the majority to form the next government. The European finance ministers are meeting today at 6 pm (London time) to discuss about the on-going problems in Greece and Spain. With ECB members publicly commenting on the prospects of Greece leaving the European Union, these seem likely to be interesting discussions.
EUR/USD is trading close to its 14-day RSI of 30, meaning the currency pair is trading in oversold territory. If EUR/USD breaks through $1.2868, the next support level is at $1.275. Meanwhile, the German wholesale price index increased 0.5% in April, following a 0.9% increase in March.