Euro Bounce, Pound Wary
The euro has bounced to a two-month high of $1.1371, leaving the 12-year low from March of $1.0457 in it’s rear view mirror. Will the momentum continue? Well, it’s certainly in the overbought zone, but sellers are few and far between at the moment. Bund yields have been firming up, especially compared to their American counterparts.
All down to the recent soft US data. Meanwhile Sterling is bracing itself for the election results, so there’s plenty to trade. It’s up and down like the proverbial.
And any Tory Brits intending to take refuge in France if Mr Milliband gets in will have to pay a little bit more for their chateau. Euro is up against the pound too.
The Conservatives and the Labour Party are neck and neck in the opinion polls in a contest that is the tightest for yours. It looks like coalition time again, and that is only going to fuel the volatility in the GBP crosses.
All in all, it’s an interesting time to be trading forex.