Fresh two-and-a-half year highs
EUR/USD hit a fresh high of 1.1966, climbing above the early-Asia levels. The pair had dipped to 1.1920 but has held a steady bid since Europe rolled in.
The story is the storm in Texas. It's going to crimp Q3 growth and cloud the outlook. In turn, that's going to make the Fed more cautious and less confident about hiking rates in December.
At the same time, Draghi is facing the inevitability of announcing a taper or outright halt to QE.
Aside from the psychological barrier at 1.20, there isn't much to halt the rally there. Rather than speculating about whether or not it will make it, maybe the question should be how much higher it will go afterwards.
