EUR/USD bounces back as focus turns to ECB
Ahead of the ECB policy decision, the EUR/USD bounced back quite sharply to turn back positive on the week and rise above parity. Is this the start of a new counter-trend rally or just short-covering ahead of a key risk event? It is worth watching the EUR/USD to see how it fares by the close of play, when traders will have digested the ECB move and Powell's speech.
If we get a close well above parity then this will provide the bulls with something to work with in the coming days. With rates being significantly oversold and dollar becoming a very crowded traded, the EUR/USD could certainly find relief. A potential 75 basis point hike from the ECB might provide the currency pair some life.
If we get a close well above parity then this will provide the bulls with something to work with in the coming days. With rates being significantly oversold and dollar becoming a very crowded traded, the EUR/USD could certainly find relief. A potential 75 basis point hike from the ECB might provide the currency pair some life.
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