EUR/USD could extend its latest drop in the very near term on the back of the following 3 reasons, says Citibank. 1- Euro banking sector risks seem to be on the rise yet again. The ratio between Eurozone and US bank stock indices has slumped close to its record low from July 2012. The last time the European bank stocks traded that low EUR/USD was close to 1.2000. These developments could be addressed at the upcoming EU summit on June 27-28. That said, the risk of disappointment remains and this could weigh on European bank stocks and the euro. 2- Government funding costs are moving back to their highest level since ... (full story)