Euro Has A Long Way To Go

Helen Rush
Helen Rush
Senior Analyst – Capital Markets •

EURUSD has refreshed 2.5-year high touching 1.1845 level. And we saw it happened on the back of rather positive housing data out of the USA.

EURUSD has refreshed 2.5-year high touching 1.1845 level. And we saw it happened on the back of rather positive housing data out of the USA.

We need to give a credit to euro zone data as well. The released core CPI number was above forecasts showing 1.2% rise instead of 1.1%. Moreover, German retail sales significantly exceeded the expectations printing 1.1% m/m rise vs 0.2% forecast. Besides, the traditional month-end flows into European currencies played its role.

Today, the German labor market report and Manufacturing PMI are released. Anditmayspeedupthepairmovehigherincaseofpositivedata.

The only barrier on the way of EURUSD to 1.20 is US Non-Farm Payrolls. However, we still have time before Friday comes, and euro can easily do another 100 pips in a couple of days.

The next target for EURUSD is at 1.19 followed by 1.1970.

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