EUR/USD retreats from 1.0990, back to 1.0950

FXStreet (Edinburgh) - The previous bullish attempt in EUR/USD has run out of steam in the 1.0990 area, triggering a leg lower to the current 1.0960/50 band.

EUR/USD forgets about PMIs

Auspicious prints from final manufacturing PMIs in Euroland plus a weaker than expected US ISM Manufacturing failed to ignite a more lasting upside in the euro, with gains capped by the upper 1.09s so far.

Looking to Tuesday’s calendar in the euro area, Producer Prices are far from spark any interest amongst traders, whereas US Factory Orders during June could bring some volatility from the USD-side of the equation.

EUR/USD levels to watch

As of writing the pair is retreating 0.27% at 1.0952 with the next support at 1.0921 (low Jul.31) followed by 1.0893 (low Jul.30) and finally 1.0811 (low Jul.11). On the flip side, a breakout of 1.0997 (high Aug.3) would target 1.1080 (high Jul.29) en route to 1.1113 (high Jul.31).

Fed hike on its way, ISM employment component on track - ING

James Knightley analyst at ING Bank explained that the ISM manufacturing index appeared to have been leaked a little early today with the headline index coming in at 52.7 for July versus 53.5 in June.
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USD/CHF up but still below 0.9700

The US dollar is posting modest gains on Monday but remains unable to climb above 0.9700. Currently the pair trades at 0.9680, 30 pips above the price it had at the begging of the day.
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