Roller coaster does not begin to describe the week that EUR/USD underwent. A leap to highs unseen in months continued with big fall. Volatility is set to continue as traders return to their desks and the ECB makes its statement. Apart from Draghi we also have employment, inflation and PMI data. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.
The fear that gripped markets continued helping the euro. The common currency has become a funding one and that was clear with the leap above 1.17. However, this didn’t last too long: not only the Fed can be more dovish but also the ECB. A hint about monetary stimulus and a rebound in atmosphere and stocks sent the pair down. Also a better than expected GDP read from the US helped the dollar regain its strength. In the euro-zone, the solid German business sentiment helped the euro early in the week while other figures did not surprise. Another exciting week awaits us. Let’s start:
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