The euro currency has significantly appreciated against the USD this year and the trend, to me, is showing no signs of reversing. I believe 1.22 is the next major target, which is about 3% above current exchange rates.
Concerned about the global economy? Don’t be, says Dr. Copper. Despite the recent slowdown in the U.S. economy and equity markets becoming a little wobbly, copper prices have been surging higher over the past three months following a lengthy 6-month consolidation.
Short covering from oversold levels lifted the GBP/USD from 1.2775 to a high so far of almost 1.2930. The euro/British pound currency pair's strong upward trend paused as the cross drifted lower to around 0.9200 while the GBP/JPY made back more than half of it sharp falls from the day before.
Despite this being a quiet session so far, we have seen the pound fall below 1.28 against the U.S. dollar while the euro strengthened thanks to the Eurozone flash PMI data, which were mostly stronger than expected. The data helped to boost expectations about tighter monetary conditions in the single currency bloc.
Financial markets offered a muted response towards Mario Draghi’s speech in Germany on Wednesday. Investors who were expecting fireworks left disappointed after the ECB chief maintained a safe distance from market-sensitive remarks.
The British Pound is trying to steady its stance at 1.28, after stronger than expected UK wage growth figures spared it from further losses, following a heavy decline noted in the latest inflation figures that were released yesterday.