A spike in sterling to a session high of 1.2291 materialised amid London hours Wednesday, on the back of a time limited backstop rumour. The headline, however, was later denied by EU officials, also considered non-viable by DUP representatives.
The US dollar index, or ‘DXY’, toppled its 99.00 threshold despite noticeably weaker-than-consensus US PPI data. Leaving 1.10 unchallenged, the H4 candles found resistance off September’s opening level at 1.0989, guiding the EUR/USD to a session low of 1.0940 on the day.
Europe’s single currency kicked off the week subdued, ranging no more than 40 points against the US dollar. After clocking a session low of 1.0961, EUR/USD’s H4 candles shook hands with the key figure 1.10 (alongside September’s opening level at 1.0989) though failed to preserve an upside presence.
Europe’s shared currency staged a modest recovery against the buck last week, snapping a two-week bearish phase a few points ahead of the 2016 yearly opening level at 1.0873.
Renewed Brexit optimism as well as a waning buck provided a healthy boost to the British pound Thursday, clocking session highs at 1.2413 and running stops above the 1.24 handle on the H4 timeframe.
