EUR/USD update (7th Sep 2012, 16:00)

The euro added over 50 points versus its US counterpart this morning, as the post-ECB bounce continued for a second day. 

Mario Draghi may not have solved the crisis completely, but he does seem to have bought the euro some breathing space. His plan lived up to expectations, and indeed has probably gone beyond that, since we haven't seen any sign of investors selling on the fact, having bought the rumour.

The ECB's plan seems to have tempted out the optimists, with yields on Spanish and Italian bonds dropping across the board, and investors leaving safe havens such as the US dollar and the Swiss franc in preference to the euro. A positive non-farms report could put further upward pressure on the euro, making $1.2700 a potential first step. Further signs of progress in the eurozone would then mean that $1.2800 is the next line of resistance for EUR/USD.


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EUR/USD update (7th Sep 2012, 16:00)

The euro added over 50 points versus its US counterpart this morning, as the post-ECB bounce continued for a second day. 

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