Welcoming Draghi's perpetual patience towards further monetary actions, the euro is meeting our expectations today and breaking out of the consolidating range it has traded in since last fall. On a longer-term horizon, it is also now above overhead resistance that capped the sharp rally last year as well as the exhaustive highs in Q2 2011.
The breakout is coming at the expense of the US dollar, whose weakness we have anticipated would support the gathering bid in the commodity and precious metals markets as well as those currencies buttressed by their strength.
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