The EUR has now broken through important resistance but fallen back short-term. As of this writing the Single Currency is about 1.3673 and it is testing highs not seen since the first days after the New Year. Greater highs were made during the holiday season so those values should be taken with a grain of salt. However if the EUR should begin to traverse values within the sphere of 1.3700 it will begin to test marks not seen since early December before the Fed’s last monetary policy meeting. And as coincidence goes the U.S. has an important Fed meeting next week via the FOMC.

Data has been mixed from the U.S. recently in addition Asian economic statistics have not been optimistic. While the Fed has tried to walk a delicate line while talking about an enacting a slight tapering it has not found an easy path in which it can predict clear blue skies. The U.S. economy continues to show signs of stress like its global counterparts. Thus, the EUR and its investors may be keen to see just how the Americans will push forth policy next week regarding the Greenback. If the Fed should show any signs of wiggle room regarding its ‘light touch’ regarding monetary policy and continue to walk delicately when issuing its FOMC Statement the EUR is likely to keep its value.

It is a tangle web as investors try to decipher data and policy that has left them scratching their heads. Having prepared for a tapering from the States because they had been spoon fed a constant barrage of optimistic pronouncements about the U.S. outlook for growth, recent data has put investors on the back of their heels and this is having an effect not only on the FX markets but on bourses as well particularly Wall Street.