After very choppy and uninteresting trade earlier, euro/dollar dropped to support. A bulk of positive, or “not disastrous” US figures send the pair lower. Will we see a breakout?
ADP Non-Farm Payrolls were OK: not outstanding, but within expectations, and showed a gain of 91K jobs in August which ends now.
Chicago PMI dropped to 56.5 from 58.8. This low level wasn’t seen in many months, but it exceeded expectations for a drop to 54.3 points.
US factory orders were really good and not only plausible: they rose by 2.4%, above 1.8% that was expected. This came on top of a drop of 0.4% last month. This was revised higher from a drop of 0.8% initially reported.
On the other side of the pond, Greek banks are in trouble: while the merger announced early in the week was good news, it also forced the banks to acknowledge losses related to the recent deals, and to perform write-offs. The picture isn’t pretty.
On another Greek issue, Finland still insists on getting collateral for its participation in the Greek bailout. The Austrians got appetite as well. Germany and France are pressuring Finland to back down.
EUR/USD is currently at 1.4405, just above the round support line of 1.44. Further support for the pair is at 1.4330 and 1.4282. Resistance is at 1.4480.
For more on the pair, see the euro dollar forecast.
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