EuroDollar trading 1.45

Wednesday, 13 April 2011 01:25

For the second time in as many days the Euro has crossed the 1.45 level, previously 1.45157 was a high and then 1.45152. In both instances the market pulled back immediately under heavy selling pressure.

Once again it looks like the market is heading north and the possibility of 1.4520 as a next level is accepted by traders.

With the market expecting the ECB of tightening further in the coming months and the fact that the US is not looking towards any monetary policy until at least the end of the year then the Euro only really has one direction at the moment.

Only if further internal strains in the EU with bailouts or potential defaults could the Euro lose some of this momentum.