EUR/USD may test the 1.10 mark short-term – Commerzbank

EUR/USD is stretching higher toward 1.0900. Short-term, we might see the 1.10 mark, in the view of Antje Praefcke, FX Analyst at Commerzbank.

Move might go further

“It is quite possible that the divergence between the Euro and the Dollar will widen even more during this week, although the EUR/USD move has already gone a long way. Whether that is really justified to this extent medium to long-term is another matter. However, under these circumstances, not many market participants will want to resist rising EUR/USD levels.”

“If from a market perspective, we see more arguments supporting a strong ECB and a less aggressive Fed, EUR/USD might want to test the 1.10 mark short-term.”