The EUR/USD is enjoying a slightly softer dollar environment and is once again challenging parity. I knowING economists point out that the pair could test 1.0135.
German IFO and ECB minutes in the spotlight
“1.0015/20 looks like a key intraday resistance. Above it the risk is of a move to 1.0135. US data, German IFO for August and ECB minutes release for August July, in which it rose 50 basis points, will be the ones that determine if that compression of shorts takes place today”.
“In particular, yield spreads have moved in favor of EUR/USD this week. Conditions could be ripe for a short squeeze. However, the big challenges posed by the gas crisis and the fact that the Fed remain very aggressive suggest EUR/USD rallies could stall in the 1.01/1.02 area this month.”
Source: Fx Street
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