Eurodollar bullish finally crushed the 1.1980 level, as the broad-based US dollar took heavy casualties after plummeting to the early lows of March at 91.84 on Tuesday.
U.S. President Joe Biden met on Monday with a bipartisan group of lawmakers who have all served as governors or mayors, as the White House seeks a deal on his more than $2 trillion jobs and infrastructure proposal.
Earlier, ECB’s President Christine Lagarde noted that the EU economy is still suffering the echoes of the pandemic and will continue to depend on fiscal stimulus until it fully recovers.
On a constructive note, Lagarde mentioned that the U.S. fiscal response to the pandemic would spill over European growth and inflation.
From the technical assessment, the break of 1.1980 has strengthened a short-term squeeze towards 1.2180-90. Reassess from there.