This is the most popular currency pair in the world, representing the world's two largest economies. The Euro was created to facilitate cross-border trade of European trading partners. Since its inception in 1999, the pair has faced considerable volatility as the world has faced multiple events of volatility such as the tech boom becoming the tech bust, the real estate bubble, and the European Debt Crisis which still has yet to find long-term resolution.
European data has driven strength into the currency despite the ECB’s continued insistence that taper has yet to be discussed. Will next week’s inflation prints provide even more fuel to this fire?