EUR/USD is grinding higher in thin Friday markets with dealers heavily skeptical of the results of the European stress test but skepticism has yet to pay off (unless you were very quick). A solid rally in US equities is helping fuel further short-covering as risk trades perform strongly. EUR/USD trades now at 1.2921 after trading as high as 1.2930.
I’ve not been focusing on Aussie much today given the stress-tests taking center stage but it is putting in an impressive performance, withing shouting distance of overnight highs at 0.8872. We trade now at 0.8951. Note the 200-day average in AUD comes in at the 0.8965 today. A close above that level would be a very bullish sign indeed.
