EUR/USD could be set to break out of its funk in a northerly trajectory with help from the tech stock pummeling on Wall Street. For FX traders, that's a dollar negative, one that's got more chance of playing out in the euro than the yen. Japan Inc. is much more tech-exposed than Europe, and the country also faces some uncertainty with PM Abe engulfed in a political scandal.
The risk of heavier regulation being brought to bear on U.S. tech companies will be another reason for global reserves managers to diversify away from the USD. All this in addition to an ECB which is edging toward an end to bond purchases. EUR/USD could soon be testing the minor resistance of the March high at 1.2446.
Source: Bloomberg Pro Terminal
Trader Nikolay Georgiev
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