Euro Pushes Higher as Risky Assets Rebound After Selloff

The Euro rebounded after selling off sharply to close last week as stocks reversed course on Wall St in Monday’s trading, sparking analogous rallies in Asian and early European trading. However, short-term correlation studies suggest the single currency’s link to risky assets is substantially weaker now than it had been previously, registering at just 51% versus 86.1% as recently as early April. Will the grim fundamental profile of the Euro Zone take over to drive the Euro lower, or will stock markets continue to support the exchange rate? Our DailyFX analysts weigh in and offer their top ideas for trading the single currency in the near term.