The 1.3825 level has proven more durable than expected and has sent traders first on a short-covering exercise, then on a momentum-driven buying spree. Prices are approaching the top of recent ranges in the 1.4000/10 area, catching most off guard.
Global markets are showing litle more than modest stabilization after yesterday’s slide, making this morning’s rebound most surprising. Options-players continue to dominate markets in the near-term as they have for the last week or so.
This morning we get existing home sales from the US, the most important housing indicator. With rates drifting up in recent weeks, sales could come under pressure again in the months ahead. A rise of 2.7% is expected. EUR/USD trades now at 1.3885.
