Perplexity Behind EURUSD New 2009 Highs

In recent hours, the EURUSD has managed to surge higher achieving a new 2009 high at 1.4870 - see chart.

Why this is happening is perplexing especially since German investor confidence posted a much weaker number at 56.0 versus the expected 58.8 earlier this morning.

Recovery concerns are rising due to the anomalies existing between the current rising Stock Market and the fragile global economic performance. There is no clear reason why this should be producing a bullish EURUSD sentiment.

The USDYEN has just bounced off the upper ceiling of its long standing downtrend, formed a second top and has retraced to 89.50 overnight.

The GBPUSD has rally by just over 100 pips in the last couple of hours probably in the wake of the rising EURUSD and now sits at 1.5800.

There are no major risk events today which could make the release of the Johnson & Johnson’s earnings report take center stage.