The euro broke above the 1.3000 mark and the cable is testing a resistance level during today's European trading session. Equities were higher followed by gains in spot crude oil.
Driving gains for the riskier, higher yielding assets were strong performing European equities. The DAX was trading up on the day 0.62% during the lunch hour. The EUR/USD was trading higher at 1.3020 after opening the day at 1.3008. The GBP/USD was trading at 1.5530 after opening the day at 1.5545. Spot crude oil was up at $79.30 from $78.90.
Yesterday's release of better than expected U.S. new home sales added to the increased risk appetite in the market. U.S. new home sales for the previous month recorded an increase of 330k new home sales on expectations of a rise of only 317k.
The Cable is testing the 1.5220 resistance level that was last touched in May. Momentum appears to be behind the pair as the 14-day Momentum indicator is sloping higher. The next resistance levels for the pair rest at 1.5650 and 1.5820 respectively.
Traders should be following the release of the U.S. consumer confidence numbers later today at 14:00 GMT. Positive data could spark further appreciation for riskier assets during the New York trading session.