Old teffers is back with a bang as it wipes the floor with those betting on further weak inflation. Draghi is sitting in his chair, stirring his hot chocolate while giving a wry smile to the trading screens. He won’t give two hoot about where EUR/USD goes as long as the Eurozone moves away from deflation.
1.38 has just gone and 1.3811 is the first target in the crosshairs. Above there we have the 2008 resistance line at 1.3826 which marked the top back in December.
EUR/USD daily chart
Based on the crappy inflation out from the other member states I took a short punt at 1.3727 just before the numbers. That’s getting creamed but I’ve added at 1.3795. Let’s see how far the shorts get squeezed.
The Euro is well bid all round with EUR/GBP steaming 50 pips to 0.8253 and EUR/JPY is up 110 pips. It’s even managing to pull USD/JPY up as tacks on 15 odd pips from 101.70
