In view of the analysts at BBH, demand for the euro against sterling and the yen appear to be helping the single currency against the greenback.
“The euro, which neared the GBP0.8300 in response to May's election call, is testing the GBP0.8400 area now. It finished last week near GBP0.8480. The euro reversed higher against the yen on Monday and had been climbing since. Monday's low was below JPY115, and now it is trading near JPY117.40. The JPY117.80-JPY1180.00 area may offer formidable resistance.”
“Against the dollar, the euro has approached $1.0780. Many are monitoring the trendline drawn off the high from last November and the late March high. It is found near $1.0835 today Support is pegged near $1.0700. Between $1.0750 and $1.0800, there are around 720 mln euros in options rolling off today. There are another 1.3 bln euro of options rolling off struck between $1.0715 and $1.0725. Tomorrow the $1.07 strike has 1.2 bln euros expiring.”