EUR: strategic rise?
EUR has been notably aggressive lately. Against the USD, it broke through the key resistance of 1.19 that has been keeping it in check since July, went through 1.20, and established itself above 1.21.
Against the GBP, after three months of sliding downwards from above 0.92 to below 0.89, it went up to trade above 0.90. These are tactical achievements of the euro no one would deny, but is it a local out-of-the-order event that will later on fall back into established trends, or, it is a beginning of a new phase?
ECB may have a response for that. More specifically, it will probably provide one this week as the EU country leaders are set to meet during the summit, and the ECB is about to announce its monetary policy plans. The historic 1.8trln-euro rescue package is prepared to get the damaged European economy, especially in it southern country members, out of the trouble. Once and if the resistance of Hungary and Poland is set aside, there will be no impediment for this unprecedented rescue to be put to action. With the other quantitative measures the ECB has taken a course on, the EUR should have a pretty solid promise for the upside performance.