In the mould of a near-full-bodied bullish candle, the British pound catapulted itself north against its US equivalent last week, positioning the market at the lower boundary of supply coming in at 1.3472-1.3204.
Dreary Eurozone PMIs triggered the EUR/USD’s initial decline amid early European trade Thursday, with downside further exacerbated by the press conference after the ECB interest-rate decision in which rates were left unscathed.
Broad-based US dollar selling, triggered by a sharp drop in 10-year Treasury yields, appears to be the primary catalyst behind the recent upsurge.
On the data front, the ZEW Indicator of Economic Sentiment for Germany recorded an increase of 2.5 points in January 2019, and now stands at minus 15.0 points.
Technical signals on the bigger picture, as you can probably see, are mixed. Weekly flow portends further buying may be on the cards, while daily sellers are defending nearby supply.
