We’ve seen a modest bounce in EUR/USD after the upbeat ISM figures for November.
Repeat after me: We don’t need no stinkin’ QE!
The data is a bit of a double-edged sward for the risk trade. Stronger US data means the Fed is less likely to do QE which means the commodity plays will have to live and die on supply and demand, not Fed money-printing. With Europe and China slowing, that may not be the best play in the world….
1.3525/35 is resistance near-term: Stops are seen above 1.3550 in good size.
Who knows? Maybe one of these days strong data will translate into strong dollar…