Thursday 24th April
The Euro has backed off from its highs against the USD ahead of this morning's German April IFO numbers and comments from the chairman of the EZ finance ministers, JC Juncker. Juncker yesterday said 'the Euros exchange rate is excessively volatile' prompting investors and traders to cut back on long Euro positions and for now drawing a line in the sand at $1.6000.
However with the Fed meeting next week and a slew of US economic data due over the next few days the pressure on the US dollar is expected to be maintained.
Sterling has yet again failed to hold its gains and we must always bear in mind that the currency remains the weakest of the European's and be wary of any T/R breaks to the topside.
Aussie holding well and we expect this one to show even further strength in the weeks ahead. Respect the model's T/R's and use money management!