EUR/USD edged higher today after positive data released in Europe earlier today supported the Euro. It further gained positive momentum after crossing a resistance level at $1.3040. Crossing this level initiated some outstanding buying orders after which the pair traded around $1.3060 to $1.3090 through the rest of the day.
The Euro strengthened right after Euro zone economic sentiment jumped to a 28-month high and later the German unemployment figure which declined by 20K further supported the Euro's jump. No major news events came from the U.S. today. Weekly unemployment reading came at 457K according to forecasts and made little impact over the markets today.
Traders should look forward for tomorrow, plenty of macro data out from Europe could prolong the Euro rally. GDP out from the U.S. is expected to decline, this could add to worries about the U.S. economic outlook.
Looking at market moves traders are turning more cautions. Their recent appetite for risk witnessed during July may decline soon. In which case, we should see traders moving back to buying USD. Investors are waiting to see macro data in August to get a clear picture regarding the economy. News events next week could further clarify the economic outlook.