After a strong run up on Friday to test the 1.3900 level, we've seen good selling coming into the pair this morning

Chris Weston

Pepperstone

After a strong run up on Friday to test the 1.3900 level, we've seen good selling coming into the pair this morning. There has been a whole host of ECB members over the last 48 hours talking about the EUR's strength, notably Mario Draghi, who on Saturday re-iterated his view that a 'strengthening of the exchange rate requires further monetary stimulus, that is important for our price stability'. An article in the Wall Street Journal laid down the steps the central bank could use to counter the EUR's strength including negative deposit rates. Whether this narrative pushes the EUR down materially is debatable, however it should keep EUR/USD from rallying too far from the top of the recent high of 1.3966.


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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