Rising hopes for an ECB rate hike and a final comprehensive package to solve Europe’s sovereign debt woes are lifting EUR/USD to fresh trend highs.
If Europe is an fact able to pull off the ambitious reforms the think tank forecasts, most of the European banking threats which hang over the market could be dealt with after being swept under the rung for far too long.
This is all supposition at this stage but the market is trading off it, eying the key 1.3700 area where another barrier option is rumored.
A I said earlier, if long, I’d be a scale out seller into strength as we approach technical targets of 1.3700/35, perhaps keeping a small core long if EUR gains are sustained.
