The European currency renewed its 4-month maximum yesterday, and I expect the continuation of uptrend after a slight correction for two reasons. Firstly, the IFO institute in its latest report recorded an increase in business activity in German business, which indicates the recovery of the largest economy in the eurozone after the “coronacrisis”.

Secondly, on the interbank market in London, the benchmark three-month Libor rate has renewed its historical minimum again, which indicates a substantial surplus of dollar liquidity in the financial system. The US currency shows weakness during such periods.

Trading recommendation: Buy 1.2245/1.2220 and take profit 1.2315.