EUR/USD Surged higher despite Draghi’s attempts to talk down the euro

The most important macro event this week brought nothing new, as Mario & Co left the monetary policy unchanged as it was expected. Mr Draghi pointed out that recent and increased volatility in the forex market is source of uncertainty, with little chances for interest rate hike this year. However this event resulted very positive to the EUR/USD and the pair surpassed the 1.25 handle for first time since mid December 2014. In fact Draghi’s attempts to talk down the single currency failed as its strength now is die to the solid domestic economic and the broad US Dollar’s weakness.  

EUR/USD extended  its impressive rally that started in January 2018 and today marked daily high at 1.2537 but pulled back to currently trade at 1.2482. The short term outlook for the pair remains bullish and a close above 1.25 would open doors for testing the 1.2540 – 1.2550 region.