Entering into US session, Australian Dollar remains the strongest one, riding on today’s better than expected GDP data. Euro is closely following as lifted by ECB expectations. Meanwhile, Yen is the weakest one, followed by Swiss Franc.
ECB chief economist Peter Praet is clear in his comment that “next week, the Governing Council will have to assess whether progress so far has been sufficient to warrant a gradual unwinding of our net purchases.” And, it will be a “judgement” call.
ECB governing council member Klass Knot also reiterated that the central bank should wind down the asset purchase program as soon as possible.
Technically, EUR/JPY’s strong break of 128.94 support turned resistance argues that the correction from 137.49 has completed with three waves down to 124.61.
EUR/CHF’s strong break of 38.2% retracement of 1.2004 to 1.1366 at 1.1610 also suggests that the pull back from 1.2004 already. More upside is now in favor for the Euro in near term.
