The euro continues to rise to a 3-week high after seven consecutive weeks of losses as markets raised their expectations for the European Central Bank's announcement to winding down its bond buying program by the end of the year next week at the monetary policy meeting.
The European Central Bank chief economist comments yesterday that the bank's intention to discuss the fate of the monetary stimulus program, as well as remarks by Germany’s central bank Governor Jens Weidmann, that the ECB taper its bond purchase program at the end of the year would be reasonable, pushing the EURUSD higher to 1.1820 levels from Its lowest since mid-July 2017 at 1.1509.
Also, the Sterling continued to rise for the third day in a row to test the resistance at 1.3456 and may find it difficult to continue to rally in the uncertainty surrounding the Brexit talks. Parliament will vote on the Brexit plan next week from Theresa May which would cast doubt on whether May will remain in charge and then the pound is weakening again.
