The Euro extends gains for the third consecutive day against a weaker British Pound, and nears intra-day highs at 0.8780 following BoE Bailey’s testimony on the Financial Stability report.
The recent rebound in the yen may prove short-lived, with political uncertainty in Japan and fiscal expansion pressures continuing to weigh on sentiment. Meanwhile, the unwinding of USD/JPY longs could be amplifying broader dollar weakness, ING's FX analyst Francesco Pesole notes.
Sharp and swift rally appears excessive; Euro (EUR) is likely to consolidate in a range between 1.1665 and 1.1720 against US Dollar (USD).