Following Monday's outside day, Tuesday saw the euro demonstrate an inside day. The currency is trading firmly, continuing to consolidate above the $1.08 level, which it surpassed prior to the release of the US jobs report. A break of the $1.0800-$1.0850 range may signal the direction of the next half-cent move.
The British pound rose for seven consecutive sessions through the end of last week. However, the momentum stalled, and yesterday traders began taking profits for the second consecutive session. Nevertheless, there is no follow-through selling today, and in early European trading, the pound resurfaced above $1.28. However, its gains may be capped at the $1.2825 level.