EUR/USD shows little reaction to UK election's outcome

The UK election is over, and exit polls are out, showing that conservatives are at leading with just 314 seats, short of the required majority.  Labors are gaining 266, with the Pound down nearly 200 pips after the news. The EUR/USD pair is little affected with the news, holding some pips above the 1.1200 threshold, but increasingly bearish after latest developments and retreating further from its recent tops.

It was a long day that started with a dovish ECB's Draghi, which sent the common currency to its lowest for the week against the greenback, with the pair printing 1.1194 after European policy makers downgraded their inflation projections and reaffirmed QE could be extended if needed, offsetting the removal of lower rates' perspective from the initial statement. The greenback managed to advance further after former FBI director, James Comey, testified before the Congress, calling US President Trump a liar multiple times, but hardly having an impact on financial markets.

Ahead of Asian full opening, the pair remains at the lower end of its recent range, with scope to extend its decline on a clear break below 1.12000, and next supports then at 1.1160 and 1.1120. The initial resistance is located in the 1.1250/60 region, where the pair met selling interest this Thursday, followed by 1.1300 the high set last November after Trump's victory. 

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