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Over the course of the day, the German Federal Constitutional Court will be discussing the legality of the European Outright Monetary Transaction policy. This will no doubt offer German and European politicians ample opportunity to voice their thoughts on a number of EU-wide actions.
The confusion that this might create would add to the less-than-clear picture that is coming out of Japan as far as their currency policy is concerned. The year-long US dollar strengthening measures they actioned are having considerable less effect on the markets than expected.
The price action that we have seen from the currency cross in the last four trading days suggests that, having been range-bound between 1.2800 and 1.3200 for so long, EUR/USD might stretch its legs to the north side.
As yet the much anticipated stimulus that the ECB was expected to add to the markets has failed to materialise. It is likely that equity and currency traders will be patient enough to give them a little more leeway, but in the not too distant future a lack of progress on this from the ECB is likely to be punished.