The Euro rallied slightly during the early hours on Friday, but keep in mind Thursday had seen this action as well, and in fact, was even more emphatic in its bullish pressure, only to turn around and give it up. At this point, it looks like there are a lot of headwinds, especially near the 1.09 level. So, I don’t think the Euro is about to take off.
I think it is just a continuation of the overall grinding nature of this currency pair and the fact that both central banks are coming into play on the soft side. So, if they both start cutting rates, or at least they’re going to be dovish this year, then there’s no real reason to run to one currency or the other, all things being equal. Keep in mind that the US dollar is considered to be a safety currency, so if we get some type of major risk-off type of attitude, that could change things.
