We’re within a hair or two of it crossing. So, if we see a little bit of downward momentum, I can imagine a scenario where the euro finds its way down to the 1.06 level. That would take some time. It might be the end of the year by the time we get there. This pair really doesn’t move that much.
If we break to the upside, I think once we break above 1.11, then there was a previous gap near the 1.125 area that has been significant resistance previously. And that might be where we try to go. But breaking above that, I think is going to take something extraordinary.
Remember, both of these central banks have been loosening monetary policy or in the case of the Federal Reserve, hinting that they’re going to. So, people are trying to run ahead of that decision. At the end of the day though, even if the Fed does cut, it really doesn’t change much from where we were a couple of months ago.
For a look at all of today’s economic events, check out our economic calendar.
