ING FX Strategy Research notes that the USD has rebounded slightly from Tuesday’s sell-off, but there remains little to dissuade investors from positioning in stronger activity/yield stories elsewhere in the world.
"In general equity markets remain firm and commodity prices (particularly industrial metals) continue to rise – although on the latter our commodities team feel this is largely down to supply constraints and speculators, rather than demand per se," ING adds.
On EUR/USD front, ING argues that while the pair may well have put in a short term technical top at 1.2070 yesterday, the overall bull trend remains firmly in place.
"We think the pattern of EUR/USD shallow consolidation and fresh highs will remain in place until proven otherwise," ING argues.
Source: ING Global Markets ResearchOriginal Article
