The contrarian case for a EUR/USD rally if rates can break above 1.00
The key area to watch for EUR/USD will be in the 0.9950-1.0000 zone
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The key area to watch for EUR/USD will be in the 0.9950-1.0000 zone
The key area to watch for EUR/USD will be in the 0.9950-1.0000 zone
The next directional move in EUR/USD may depend on the outcome of the central bank meetings later in July.
…the key question is: will there be a more pronounced breakdown of parity first, before it bottoms out?
The final nail in the euro’s coffin was news of a considerable deterioration in the German economic outlook
Another weak sentient report from Germany could be the straw which breaks parity’s back and send EUR/USD below this key level.
A burst of dollar strength pushed EUR/USD to just 5 pip above parity – a level which has not been tested in just under 20 years.
Can it reach parity? If so, what is stopping it from moving below parity?

USD/CHF tested and then turned back down from parity (1.0000) on Wednesday as the US dollar continued to be weighed down.

Just a couple of days before Donald Trump’s inauguration as US president, the dollar is on a modest rebound but still generally under pressure amid a pullback that has been in place since the beginning of the new year. The dollar’s initial reaction to Trump’s November election was highly positive due in large part to expectations of higher US economic growth and interest rates under the new administration. The start of 2017, however, has begun to bring some doubts about Trump’s policy implementation and the possibility of trade wars resulting from his highly protectionist trade stance.

<p>US traders are off to the races once again, and just like every other day this week, there’s a risk-on tone to early trade. Today’s bullish catalyst for risk-on data was some good old-fashioned solid economic data. </p>
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