EUR/USD enjoyed its best day of gains in 2 weeks with an 80-odd pip upside rally yesterday before finding resistance at the top of its recent trading range around the 1.0700 handle. The dollar index enjoyed a modest bounce as well from its lows around 103.50 which helped push the pair back below 1.0650 in early European trade.
As we enter the last trading day of 2022 the rebound in the dollar index could be partly attributed to investor repositioning, as markets remain cautious ahead of the long weekend. A lack of data this week has seen markets driven by renewed tension between Russia and Ukraine as well as mixed sentiment around China’s rising Covid numbers.
