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TD Securities analysts suggest that the EUR/USD pair is likely to stabilize after better-than-expected German IFO reading has taken some of the sting out of last week dire German manufacturing PMI report.

Key Quotes

“It fits with our overall expectation that the region is on a (very) slow road to recovery, but one that will remain hesitant & uneven for some time.”

“This should help EUR/USD stabilize further and reinforces the 1.1275 level as a key near-term support. That said, we do not have a huge amount of ambition to the topside.”

“We remain of the view that the broader ranges are likely to hold for the foreseeable future as it has survived major assaults over the last couple of weeks from both directions.”