EUR/USD extends rally above 1.3530

FXStreet (San Francisco) - The Euro is extending its recent rally against the US Dollar and after jumping around 50 pips in the latest two hours from 1.3485, the EUR/USD is now trading at daily highs around 1.3535.

The Euro’s jump came after ISM manufacturing PMI posted weaker than expected number. The index fell to 51.3 in January from 57.0 the previous month and below expectations of 56.0. It’s still in expansion territory.

Jamie Coleman from FXBeat points that "the Fed is making its policy slightly less accommodative while the ECB is likely to ease further in some form or fashion over the next meeting or two." In this framework, "sell rallies in EUR/USD with a stop above 1.3560 for a return to 1.3400."

EUR/USD bias

The EUR/USD is currently trading at 1.3527, 0.30% positive on the day. The short term perspective remains slightly bullish according to the FXStreet trend index in the 15-minute chart. CCI, MACD and Momentum are pointing to the north while the Stochastic is bearish.

GBP/USD rejected regardless of ISM disappointment

US ISM Manufacturing PMI is down to 51.3 in January from 57 in December but sterling only managed an initial spike through to 1.6367 before supply took the paid lower again to a low of 1.6325.
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