The jump in the euro comes alongside a push higher in European bond yields, with 2-year German bund yields now up 6 bps to 0.58%. The euro is now trading up 0.8% against the dollar to 1.0220, its highest level in nearly two weeks.
From a technical perspective, the break higher is encouraging if buyers can hold it through to the daily close. That will see a push back above 1.0200 and more importantly the 38.2 Fib retracement level at 1.0205. As such, it will allow for room to roam towards the 50.0 Fib retracement level at 1.0283 next.
The jump in the euro is also adding to dollar woes to start the week. The greenback is now marked lower across the board with GBP/USD rising to 1.2000, AUD/USD up 0.9% to 0.6875 and USD/CAD down 0.3% to 1.2940 on the day.
