Consider this – the released today industrial production data out of Eurozone was worse than expected showing the decrease by 1.1% mom against the forecasted rise by 0.2%. The single currency was supposed to fall, or at least stop rising. But it never happened. The Friday’s fall of EURUSD was used as a perfect opportunity to upload the longs.
And the thing is that the single positive report from the USA is not enough to convince the market the rate hikes are justified. Investors need to see sharp rise in in order to really believe. Thus, the US CPI report is in focus this week. And up to its release euro may keep going up.
The next target for EURUSD may stay at 1.1870.