EUR/USD keeps falling despite PMIs

FXstreet.com (Barcelona) -Better PMI prints in the core euro area don’t seem to be enough to expel the current pessimism around the EUR/USD, with the pair testing lows below 1.3240 so far.

EUR/USD door open for a leg lower?

The pair is on its way to test weekly lows around 1.3200/20, printed yesterday post-US GDP. The failure to break and sustain levels beyond 1.3300 the figure is increasing the chances of a deeper pullback in case the ECB emerges on the dovish side and the US labour market surprises to the upside. “The ECB will also be under some pressure today to try to dampen upward pressure from euro-zone short rates and the euro while acknowledging further evidence of economic recovery”, commented Lee Hardman, Currency Strategist at BTMU.

EUR/USD key levels

The pair is now losing 0.44% at 1.3243 with the next support at 1.3234 (low Jul.30) ahead of 1.3207 (low Jul.31) and then 1.3200 (psychological level). On the flip side, a surpass of 1.3417 (high Jun.19) would open the door to 1.3456 (high Feb.14) and then 1.3481 (76.4% of 1.3711-1.2740).

UK: PMI Manufacturing improves further in July

UK PMI Manufacturing jumped to 54.6 points in July, from 52.5 points in June, according to data released today by Markit. Analysts expected less expansion to 52.8 points.
Mehr darüber lesen Previous

Flash: Markets fixated on BoE and ECB decisions - BTMU

Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that market attention will switch to today’s BoE and ECB monetary policy meetings.
Mehr darüber lesen Next