On Tuesday, the risk rally on global markets continued unabatedly. However, the impact on the most major currency cross rates was limited. EUR/USD held a tight consolidation pattern near the 1.31 pivot. On Tuesday morning, it looked as if EUR/USD traders would be in for another dull trading session as there were very few eco data. The RBA cutting its policy rate to a record low was another indication that global central bankers where still inclined to support the economy further rather than taking back policy stimulation. This continued to inspire global risk taking. At first, EUR/USD hardly profited from this risk-on context. The pair hovered in the high 1.30 area during the morning session. The pair also ignored headlines from German Fin min Schaeuble as he suggested that a European Banking union could be on its way quickly under the current EU treaties.
Click here to read the full report: FX Daily
KBC