Euro Rally Defies Broader Risk Trends, Can it Last?
Those trading EURUSD on the open Monday were deceived by a false bearish, congestion break that lead directly into a strong bullish reversal. Given the undercurrent of this liquid pair specifically, a number of theories were tapped to explain the move. Risk appetite trends were notable lacking for traction as the S&P 500 passed virtually unmoved. The US dollar itself was underperforming, but notably firm against its high-yield counterparts. That leaves us with Euro-based strength. Yet, has the fundamental backdrop truly improved for the currency, or is this an unusual and temporary factor?