This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The return of Greece to bond markets has at least helped to counteract recent anaemic economic news. Assisted by US dollar weakness, the euro has been allowed to ignore increasing hints from the European Central Bank that the currency may be too high.
Some cautiously dovish commentary from Germany has given the impetus to traders to push the euro higher, and we are now looking for a close above $1.39.
Resistance is only a short distance away, as we head towards $1.3950, but the sequence of higher lows and higher highs witnessed in EUR/USD means that this uptrend does remain quite healthy.
As we approach the weekend, it should be noted that Mario Draghi will be speaking in Washington on Saturday. We will be looking out for any comments that reveal his thinking about the current strength of the euro. Any suggestion that he believes it is too high could result in heavy selling on Monday, so caution is advised.