Following on the heels of Trump, whose words regarding the halting of the stimulus deal brought on a risk aversion sentiment in the market – in Europe, the words of ECB’s President, La Garde were not brighter as she expressed concerns about the economic recovery and ‘that she fears that instead of a V-shaped recovery, the rebound would be shaky’.
It is good thing that the EUR/USD was resilient to these comments – and came in at a fresh 2 week high of 1.1807. This is most likely attributed to the strengthening of the USD due to the risk aversion sentiment. The RSI points towards a further appreciation as it breaks out of the downward trend.
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