A second day of aggressive ECB bond buying is helping support EUR/USD in advance of today’s US employment report. Spanish 10-year spreads are down to 220 bp from 235 bp late yesterday and above 300 bp earlier this week.
My guess is that the market will great a positive US employment report by reverting to the old “risk on” trade, so the dollar may fall on good US news.
Resistance lies in the 1.3275/1.3325 region.
