Flash: EUR/USD topping signals emerging

FXstreet.com (London) - Strategists at TD Securities noted EUR/USD’s relentless climb since early November and said that particularly over the past week, has seen a pullback overnight on the back of a broadly stronger USD.

Key Quotes:

“Some softer EZ data this week and generally better US data was unable to dent the pair’s bull trend, although Monday’s flash EZ PMI’s have a better chance of getting a reaction from the currency”.

“The bigger issue for EUR/USD in the coming days though will be talk about the potential for Fed tapering, which a considerable portion of participants believe could come as soon as next week”.

“Tapering headlines will be the key market driver in the coming sessions, but fundamentally we continue to view EUR/USD as rich at these levels”.