More range bound trade ahead as EUR/USD continues to hold up and away from the low 1.1700's, deterred by the strong demand we saw on the dip under the figure earlier in the week.
Technically, 1.1820-30 is first resistance on the upside, and there seems to be little incentive to test this area, but we get the sense that markets are waiting for a prompt, and we stay mid 1.1700 in the meantime.
Despite continued efforts from ECB members to reassure the market that tightening will be ever so gradual, the longer term view of inevitable tapering proves supportive, bolstered by the fact that the longer the governing council hold off, the swifter eventual action will have to be. Inflation is the fly in the ointment for this argument.
Against this, the Fed has been a little less dovish of late, despite the likes of Kashkari and Kaplan maintaining an uber cautious tone.
EUR/CHF and USD/CHF moving up in tandem today, with the former finding a base under 1.1400, while the latter has now taken out the line of resistance at 0.9770.
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