- The pair remains on the defensive today in the mid-1.1500s.
- The bid tone around the buck remains well and sound near 95.50.
- Flash PMIs in core Euroland came in mixed for the current month.
The selling bias around the European currency remains well and sound on Thursday, with EUR/USD navigating the mid-1.1500s in the wake of advanced PMIs.
EUR/USD looks to data, USD
Spot remains under some selling pressure in the second half of the week, giving away part of the recent advance to levels beyond 1.1600 the figure and refocusing instead on the 1.1550 area and below.
EUR has also derived some offers after flash PMIs in core Euroland came in on a mixed tone for the month of August. In fact, flash manufacturing PMI in Germany and the euro zone missed estimates at 56.1 and 54.6, respectively, while France’s manufacturing PMI is expected above expectations at 53.7.
In the meantime, the buying interest around the greenback has resurfaced today on trade jitters and despite the recent headlines from the US political scenario involving President Trump.
Still in Euroland, BuBa’s J.Weidmann advocated once again for an end of the QE programme, adding that the normalization process should be gradual and might take ‘a few years’. Weidmann also said that inflation projections are moving pari passu with the central bank’s target. He also emphasized that a major trade war could be ‘severely detrimental’ to the global economy.
EUR/USD levels to watch
At the moment, the pair is losing 0.33% at 1.1557 and a break below 1.1539 (21-day SMA) would target 1.1453 (10-day SMA) en route to 1.1299 (2018 low Aug.15). On the upside, the next hurdle emerges at 1.1623 (high Aug.22) seconded by 1.1629 (high Aug.8) and finally 1.1745 (high Jul.31).
Share
