Too early for bottom-fishing and my long-term bias (that
EUR/USD is tracing a slow but clear bottom), needs to be kept in check.
A bit of a Euro short-covering rally overnight changes nothing.
The 1.0580 area where the last two EUR/USD falls have found resistance is the next key support.
In the meantime, it’s time for the EU Commission to tell peripheral
countries to tighten up their 2017 budgets, in complete contrast to
global calls for less austerity. Nothing here to help the Euro bounce, sadly
The US Treasury market sell-off seems to have lost momentum, which
had to happen at some point and with that, the dollar rally looks a bit
jaded too. Maybe that provides some temporary support for the Euro, but
nothing more and any support for the yen is likely to short-lived too. We remain firmly bullish USD/JPY even if it’s moved up faster than we expected.