The pair is now trading up to its highest level in a week, clipping the 1.1300 level today. This comes as the dollar remains more sluggish across the board in trading this week, with today being no exception.
USD/JPY is down 0.3% to 114.33 and USD/CHF also down 0.2% to 0.9194 on the day. And we are seeing EUR/USD hit a session high of 1.1306 as buyers start to contest a push back above 1.1300:
The 50.0 retracement level @ 1.1302 may help to limit gains, so that is one to watch but a firm push above that will open up the path to a potential return to 1.1400 and perhaps the 100-day moving average (red line) @ 1.1434 next.
The fact that Eurozone inflation continues to run rampant to start the year will just add to uneasiness in the ECB and pressure policymakers into hurrying up to remove stimulus in the months ahead. The push and pull in market pricing on that front will be a key spot to watch for the euro.
