5 Sep 2013
EUR/USD sidelined around 1.3170
FXstreet.com (Edinburgh) -The EUR/USD is now attempting a consolidation pattern in the boundaries of 1.3170, while market participants remains focused on key German data and the ECB gathering.
EUR/USD attention on German, US data
German Factory Orders are due next, with forecasts expecting an annual expansion of 2.7% during July, lower than June’s 4.3% advance. Apart from the central event coming in with the ECB meeting, several critical releases across the pond would surely play an important role in today’s price action: ADP report on the US private sector’s job creation, ISM Non Manufacturing, the weekly report on the labour market and Factory Orders. “In our view, there are fewer arguments for a rate cut today than a month ago, given recent upside surprises in economic indicators and a slower pace of decline in excess liquidity. Hence, we expect the ECB to keep rates unchanged and Draghi to refrain from explaining further the forward guidance”, noted Allan von Mehren, Chief Analyst at Danske Bank.
EUR/USD levels to watch
As of writing the pair is losing 0.28% at 1.3169 with the initial support at 1.3157 (low Sep.4) followed by 1.3147 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3218 (high Sep.4) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).
EUR/USD attention on German, US data
German Factory Orders are due next, with forecasts expecting an annual expansion of 2.7% during July, lower than June’s 4.3% advance. Apart from the central event coming in with the ECB meeting, several critical releases across the pond would surely play an important role in today’s price action: ADP report on the US private sector’s job creation, ISM Non Manufacturing, the weekly report on the labour market and Factory Orders. “In our view, there are fewer arguments for a rate cut today than a month ago, given recent upside surprises in economic indicators and a slower pace of decline in excess liquidity. Hence, we expect the ECB to keep rates unchanged and Draghi to refrain from explaining further the forward guidance”, noted Allan von Mehren, Chief Analyst at Danske Bank.
EUR/USD levels to watch
As of writing the pair is losing 0.28% at 1.3169 with the initial support at 1.3157 (low Sep.4) followed by 1.3147 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3218 (high Sep.4) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).