The euro so far is not losing altitude like it did until a few days ago. That’s despite the shock rate cut from the European Central Bank.
Perhaps in hindsight investors see the ECB as being less dovish than first thought. Rates were already low and there is tale that some ECB policymakers were not completely enamored with the rate cut. If true that would rule out other stimulus.
Then there is ongoing demand for the single currency from Emerging Market central banks, particularly Asia, that want to diversify. Sovereign funds also want euros to invest as the euro zone economy recovers.
There are still for and against cases for both the euro and the dollar. Still no clear investment wind one way or the other in that particularly pair.
But note the euro bounced off four-day trend line support at 1.3390 on Wednesday indicating investors aren't ready to push it lower without a very clear reason.