What Fundamental Stuff are Moving the Pairs?
- Canadian CPI
- University of Michigan Consumer Sentiment
The Euro firmed yesterday against the dollar after German Chancellor Angela Merkel’s reiterated her support for ECB President Mario Draghi’s vow to do “whatever is necessary to save the Euro.” On the news, the EUR/USD rallied from 1.2260 early yesterday to a current high of 1.2370. Interestingly though, the EU news spilled over to the global equity market which saw gains in prices. However, riskier currencies such as the Aussie and Kiwi have been trending lower.
The EUR/USD was seen bouncing from 1.2333, new daily low, and jumped to 1.2350/60 area where it lies ahead of US Reuters/Michigan Consumer Sentiment Index. Looking ahead, to confirm that the rally has legs, we will need to see the pair trade and hold above 1.2400. Such a move would reveal that demand is stepping up in the pair and that yesterday’s gains weren’t only triggered by short covering.
By Kiana Danial