EUR/USD touches a high of 1.1759 on the day
It’s very much a reverse of the earlier move seen here at the start of the session. The dollar and yen are on the back foot now with EUR/USD rising to 1.1759 while EUR/JPY climbs to 132.45 on the day.
At the same time, AUD/USD and NZD/USD are also paring back some of their earlier losses with both pairs moving higher to 0.7275 and 0.6671 respectively. The aussie is trading close to its best levels on the day now against the loonie and the yen as well.
There hasn’t been much pullback in risk sentiment as equities continue to trade lower although S&P 500 futures are only down 0.2% now having slipped to lows of 0.3% losses an hour earlier.
But in essence, the climb here in the euro is driven partially by the pound’s surge as well. GBP/USD is now trading near 1.3120 levels and that has lifted the euro to the highs of the day inadvertently.
For EUR/USD, the near-term bullish bias remains intact and buyers can now look towards targeting another test of the 1.1790-10 resistance region again. Headlines and risk events are few and far between on the day, so don’t expect any major boost to come from them.
Draghi is lined up to speak at 1300 GMT later, so that will be something to watch out for.