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EUR/USD jumps to 1.2575 amid Draghi's challenge

FXStreet (San Francisco) - The Euro is trading firm against the US Dollar following the recent Reuters report that the national central bankers of the euro area are expected to challenge Draghi on his leadership style.

Investors are still digesting the news as it represents a threat to the possibility of not getting the monetary policy measures that are expected from the ECB. Forex market veteran Gerry Davies wrote in his Twitter account @Gerry02140 that the EUR/USD "touch firmer on Reuters sources comment;" and remarks that "does challenge make full-blown QE more difficult?"

Previously in the day, the EUR/USD was trading sideways in between 1.2500 and 1.2525 as a "huge 1.2500 vanilla option expiry (5.9bn) was sticking market at today's New York cut," as Davies reported.

The EUR/USD jumped 70 pips from 1.2505 to break above previous highs and reach a fresh daily maximum at 1.2575. Currently, EUR/USD is trading at 1.2564, up 0.60% on the day, having posted a daily high at 1.2578 and low at 1.2480.

The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

EUR/USD Levels

If the pair extends gains above 1.2575, it will find next resistances at 1.2600 and 1.2630. To the downside, supports are at 1.2530, 1.2500 and 1.2470.

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