The Euro is the stellar performer this morning, how far can it get
This morning we have a stellar performer on the foreign exchange market and that is the Euro currency. After inflation data was released higher than expected at 10:00 GMT, the single European currency has risen across the board in a strong and solid manner.
For those of you who have missed the boat, we have a forecast to present - we believe that any dip in the coming hours towards 1.3770 could be a great opportunity to buy some daily calls. Only a break below 1.3750 on an hourly basis would invalidate that scenario.
Early European morning and Asia have been quiet for the EUR/USD binary options forex pair. Prices hovered between 1.37 and 1.3725 for the most of the Asian session, but as the day unfolded and we received the Euro Zone inflation print coming at +0.8% there was a sharp spike higher.
Since most of the time we do not see European data to have such an abrupt impact on the market the move has come as a surprise for many. The main theme behind the importance of this data is that there was speculation that the ECB might cut rates next week, as inflation slows.
Since those fears did not materialize we saw a protracted rally towards 1.38 which quickly followed all the way to 1.3812 to mark a new monthly high. The pair has been consolidating for the past couple of hours, but that is mainly due to incoming US data.
Be alert to US GDP figures released at 13:30 GMT and the subsequent slew of smaller releases - Chicago PMI at 14:45, Reuters' Consumer Sentiment at 14:55 and Pending Home Sales at 15:00 to conclude the busy day.
The key level to watch is 1.3770, if we manage a break back below 1.3750 look for the pair to fall further all the way back to 1.37. Happy Friday and be vigilant during the last trading day of the week.