5 Sep 2013
EUR/USD drifts lower early Thursday ahead of ECB and flood of data
FXstreet.com (Barcelona) - The EUR/USD probably has more of a bounce in store, but it has been drifting lower since just ahead of the US Fed’s Beige Book Survey. The ECB’s rate decision and comments loom as the big driver for the cross Thursday.
German orders, the ECB’s decision and a flurry of US data to drive things Thursday
The EUR/USD has been gently drifting lower since about 15:40 GMT, but it has only given back a portion of the gains. If no ECB announcement were due out, the gentle drift lower after a sharp gain could be taken as a sign of more upside to come. As it is, not much should be read into the rally and drift.
Thursday will give traders plenty of data and news to digest:
• Euro data: German Factory Orders and the ECB Interest Rate Decision / policy statement,
• US data: ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI; and, the Fed’s Kocherlakota will be speaking later in the session
Technical outlook for EUR/USD
Technicians say EUR/USD remains broken technically, but that a corrective bounce could take the EUR/USD up to the 1.3241 to 1.3273 range. The very maximum resistance comes into play at 1.3297. The downside target once this corrective rally tops out will be 1.3100 to 1.3138.
German orders, the ECB’s decision and a flurry of US data to drive things Thursday
The EUR/USD has been gently drifting lower since about 15:40 GMT, but it has only given back a portion of the gains. If no ECB announcement were due out, the gentle drift lower after a sharp gain could be taken as a sign of more upside to come. As it is, not much should be read into the rally and drift.
Thursday will give traders plenty of data and news to digest:
• Euro data: German Factory Orders and the ECB Interest Rate Decision / policy statement,
• US data: ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI; and, the Fed’s Kocherlakota will be speaking later in the session
Technical outlook for EUR/USD
Technicians say EUR/USD remains broken technically, but that a corrective bounce could take the EUR/USD up to the 1.3241 to 1.3273 range. The very maximum resistance comes into play at 1.3297. The downside target once this corrective rally tops out will be 1.3100 to 1.3138.