Despite all the reflation euphoria breaking out in other markets, currencies have run into a roadblock. EUR/USD is quietly consolidating between 1.4960 and 1.5000 while equities digest the earlier buying binge, now up 1.6%.
Forex traders are fighting off drowsiness that usually accompanies thanksgiving dinner…Lots of data tomorrow and Wednesday to keep the market focused, so the next few hours could be the lull before the storm, with any luck.
Near-term, a dip to trigger weak stops just below 1.4960 seems inevitable. If not accompanied by profit-taking in the stock and commodities markets, use it as a buying opportunity for a quick topside punt to the 1.5015 area. EUR/USD trades now at 1.4975.
