Thin liquidity the evening before the US Thanksgiving holiday did nothing to stop the continued march higher in EUR/USD. Part of the reason for the strength in EUR/USD was the bid in the JPY crosses as the Nikkei 225 index turned positive after being down more than 100 points. USD/JPY was also notably strong as it rallied to test towards 109.00, a key level that was broken earlier today.
Data is light for the next 24 hours but don’t expect that to calm markets. Last year during Thanksgiving week EUR/USD rallied through 1.3000 and has not looked back. With the psychological magnet 1.5000 fast approaching we could see a euphoric rush higher. However, today crude oil traded just under $100 before reversing. Similarly, could EUR/USD turn back from 1.5000? So far there doesn’t appear to be any catalyst to stop EUR/USD.
Upcoming Economic Data Releases
- Germany: (2am ET) Quarter over quarter expected .7% vs. previous .3% (relevance: medium).
- Switzerland: (3:15am ET) Employment level previous 3.737 million (relevance: low).
