EUR/USD yesterday made some timid attempts to go below 1.19 again, but these failed and the market chose to take some profits on the recent dollar strength. The EUR/USD pair moved back up to the 1.1980 area by the close of the session and this morning the pair has even touched the 1.20 area. Today, again some eco data can guide the markets, with housing starts, industrial production and Michigan consumer confidence.
The current strategy of buying USD on dips is maintained. The economic recovery is helping up rate hike perceptions and this should continue to drive dollar strength on such occasions.
ČSOB - Investment Research