The euro has managed to snap its losing streak from last week against the US dollar, as investors bought the single currency on the continued expectation that September's ECB meeting will deliver the goods.
In an interesting move this morning, word came that ECB president Mario Draghi would not be attending the Jackson Hole economic conference this week. There was a brief flurry of uncertainty, since investors were unsure whether the news could be construed as good or bad. In the end the bulls won out, citing Mr Draghi’s excuse that he was dealing with a heavy workload. This, according to the reasoning, is a 'good thing' since it suggests he is busily working on a plan to save the eurozone (or at least provide another temporary respite).
The upward surge faltered just shy of the $1.2550 level, but the gains still seem to be holding for now. Last week's level around $1.2430 could provide a degree of support if the selling resumes, but we may well see trading in EUR/USD quieten down ahead of Friday as investors sit on their hands ahead of Ben Bernanke's speech.