The pair closed in NY Monday at $1.3101 after pivoting around $1.3100 within a $1.3077-1.31167 range. Euro-dollar has been basically sidelined with Thursday’s ECB rate decision in focus (many believe the ECB will cut rates at this meeting), though this decision surrounded by key data from Europe and the US. This sidelining continued through the overnight Asian session with trade contained within $1.3084-1.3103, opening Europe around $1.3094. Thursday’s decision is surrounded by key data, releases and holidays. For today we have Germany retail sales at 0600GMT, followed by Spain GDP at 0700GMT, Germany employment at 0755GMT and EZ CPI at 0900GMT. US Chicago Report and US consumer confidence at 1345 and 1400 respectively provide the afternoon interest. Europe holiday Wednesday likely to further subdue trade once these events pass. Euro-dollar offers remain in place to $1.3120 with talk now of stops placed from $1.3120 through to $1.3140, though if triggered to run into offers at $1.3150. Main bid interest seen below current market between $1.3030/10, Asian sovereign and European corp interest noted here. Today being month end some interest to be shown in the fixes though no major signals seen for the euro.
EasyForexNews Research Team