Yesterday, the euro touched a one-year high, rising for a fourth straight day. Much of the rally was driven by broad-based dollar weakness, but the market is also taking comfort in the idea that the eurozone is not headed for an ugly economic outcome.
Eurozone consumer confidence data released today was slightly weaker than consensus, but the trend has clearly improved, albeit slowly.
Eurozone consumer confidence rises sharply
With the US dollar broadly recovering today on concerns over the possibility of a hawkish Powell, the euro has given up yesterday’s gains. What is noteworthy, however, is that bulls have been buying on three dips just below 1.1100. So far, the rallies have been shallow but this will be the level to watch until Friday’s 10am speech.
EURUSD 10 minutes
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