Forex: Dollar pressured as the week ends

[Rey Nuevo]

FXstreet.com (Buenos Aires) – Dollar has been smashed against most rivals for the past 2 days, as ECB Draghi came to the rescue yesterday, stating the ECB is ready to do whatever it takes to save the euro. EU authorities today, spent most of the day cheering the statement. Next week, we will see if words can be supported with actions. In the meantime, high yielders consolidate at weekly highs against the greenback, with the EUR/USD steady around 1.2360 and GBP/USD around 1.5725.

 

The EUR/USD has broken above 1.2330 area that capped the upside for most of this July; if the ECB actually acts, a midterm bullish continuation rally will likely follow, and an interim bottom may be called in the 1.2041 posted earlier this week. So far, the daily high remains at 1.2367. For the GBP/USD, the picture is a bit less clear as the pair stalled at key 1.5770 area which is past June monthly high. According to Valeria Bednarik, FXstreet.com chief analyst, “pound needs to clearly break this area to confirm further strength on the days to come.”