EUR/USD struggles to break above $1.2790
Today will see European Central Bank president Mario Draghi bookending the trading day with speeches at 8am and again at 7pm (London time). The influence his word is having on EUR/USD has steadily declined as it has become increasingly obvious that he is seriously restricted as to what actions he is able to take. It is assumed that with UK inflation coming in lower by 0.2%, there will be similar pressures on the already low eurozone inflation rate tomorrow.
Yesterday saw EUR/USD drop by almost 100 pips but still remains some 140 pips clear of its 12-month lows. The EUR/USD pair was already heavily oversold ahead of this week, and having seen 1200 pips dropped over the last three months was in desperate need of a correction. For the time being it looks unlikely to be able to break above last week’s high of the $1.2790 region.