The buck is under pressure; stocks are back above 1,100, gold is making fresh records…Looks like everything is back to normal!
Bullard’s comments over the weekend suggesting the Fed should retain flexibility to extend QE is the latest catalyst for dollar weakness and a rush into assets, both hard and soft.
A layer of resistance lies at 1.4990 in EUR/USD near-term with more at 1.5015 ahead of the range-tops in the 1.5050/60 area. The “easy” money has probably been made for this rally, but that’s not to say the market doesn’t like a challenge. Support lies at 1.4960 in the near-term.
Next up is the Chicago Fed National activity index at 13:30 GMT. This is an ISM-proxy. It was at -0.81 last time.