@12:44 PM Sydney
Traders are focusing on the euro today after the currency’s spectacular rally on Friday following European Central Bank commentary last week and some hope that Germany will soon form a government. .
The euro held around the $US1.22 mark on Monday after the currency had what Stephen Innes, head of APAC trading at OANDA called a “remarkable” day on Friday.
He said that the European currency looks poised to make further gains:
“It’s conceivable the euro will trade above $1.30 this year, but interim targets towards $1.24-$1.25 near-term look like a logical take profit zone and probably the next congestion point.
“In the meantime, the hawkish ECB minutes and diminishing political risk should continue to drive sentiment. Politics will remain a key driver of opinion with both CDU and SPD converging to a Grand Coalition.
“Of interest this week will be ECB speakers Weidmann and Coeure whose comments will be carefully watched after the release of the hawkish ECB minutes. Not a great time to be short euro.”
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