EUR/USD Clears 1.4200, EUR/JPY Extends Advance

EUR-USD triggered stops above 1.4200 as more fund buying went through, with European indices on a firmer footing. The pair extended to 1.4235 as there was little in the way of offers once 1.4210-20 gave way. EUR-JPY also extended its gains and traded up to 134.67 as JPY and USD both move broadly lower, with risk appetite firmly underpinning. EUR should remain in the ascendency as market participants continue to gamble on a V shaped economic recovery. Commodity markets are well supported, which has reinforced by the CRB and the BDI index, which should bode well for speculative positioning and carry trades ahead. There strength of today’s gains will be determined by EUR-USD’s ability to clear mooted options interest between 1.4250 and 1.4275, while technically the underlying trend is supporting a move into the 1.43s, with very little resistance until 1.4335.