It was Halloween for Draghi yesterday. Whatever Draghi was selling yesterday no one was buying it, or perhaps he has the worst selling skills. The euro-dollar pair has touched another high for this year and it appears that the pair is ready to rip apart any resistance which is in its way. The next major resistance is at 1.1714, the August 2015 high. We are up 10.78% YTD and that is a remarkable performance for the currency, especially when many were talking about the euro parity against the dollar. The Euro was the best performer yesterday among the G10.
It was Halloween for Draghi yesterday. Whatever Draghi was selling yesterday no one was buying it, or perhaps he has the worst selling skills. The euro-dollar pair has touched another high for this year and it appears that the pair is ready to rip apart any resistance which is in its way. The next major resistance is at 1.1714, the August 2015 high. We are up 10.78% YTD and that is a remarkable performance for the currency, especially when many were talking about the euro parity against the dollar. The Euro was the best performer yesterday among the G10.
The relationship which matters the most is the one between the euro and the equity market. If the currency traders loved the fact that the ECB’s head is against the ceiling and they will have no choice but scale back, the equity traders are apprehensive of the fact that a higher euro is going to eat up their profit.
