EUR/USD slips from the levels it traded in and falls to 1.1140. It is getting closer to the multi-year low of 1.1098.
The pair continues ignoring better than expected euro-zone data.
Update: the new low so far is 1.1128, and Mike Paterson notes that a barrier option at 1.1150 was triggered.
The Greek crisis had an impact on the euro, and so does data, but the ECB is stronger. In tomorrow’s meeting, we will get some more details about the implementation of the upcoming QE program. And as the ECB loosens, the Fed tightens.
Spanish services PMI remained high at 56.2 points, with the best employment component since 2007. Update: Contrary to Spain, ITaly’s Markit services PMI missed at 50 points instead of 51.4 points expected. So, in this case, the weaker data justifies a weaker euro. But, Italian services PMI and this kind of miss is not what usually moves markets.
We have final services PMI for the euro-zone later today, as well as retail sales. German retail sales beat expectations and so did French consumer spending.
Here is why euro-zone positive surprises cannot help the euro – not now.
Regarding data, the focus today is on the US. There, we had some better data and some worse. The key components that affect the Fed: core inflation and employment, remain upbeat. But all the rest, such as durable goods orders, retail sales and PMIs, missed.
The important data points are the ADP NFP and the ISM Non-Manufacturing PMI. Both serve as important hints towards Friday’s Non-Farm Payrolls numbers.
More: Get Ready For The Next Leg Lower In EUR/USD Coming Weeks
Here is the chart that shows the fall. Can it deteriorate below 1.11?
The level to watch on the upside is 1.1150 followed by 1.12. On the downside, the 1.1098 low seen on January 26th is key support before the round number of 1.10.
In this week’s podcast, we cover Yellen & the hike, AUD & CAD rate previews, Jobless claims vs. USD & Greek back burner
Subscribe to our iTunes page
Share
