Euro bounces from 1.11

Yesterday the euro touched the highest in a year as it rallied for a fourth straight day. A good chunk of that climb was on the heels of a broadly softening US dollar but the market is also feeling more comfortable with the idea that the eurozone isn’t headed for an ugly economic outcome.

Today’s eurozone flash consumer confidence data was a touch softer than the consensus but the trend has clearly improved, albeit slowly.

With the broad USD bounce back today on worries about a hawkish Powell, the euro has given back yesterday’s gains. What’s notable though is that the bulls have been buying on three dips just below 1.1100. So far the bounces have been shallow but that’s going to be the level to watch until the 10 am Friday speech.

This article was written by Adam Button at www.forexlive.com.