21 Nov 2013
EUR/USD struggles around 1.3440
FXstreet.com (Edinburgh) - The EUR/USD is posting meagre gains on Thursday, although the 1.3440/45 region is probing to be quite a tough barrier so far.
EUR/USD focus on US docket
With the mixed PMI readings in the rear mirror view, market participants are now looking to the releases across the pond for another source of volatility. The weekly report on the US labour market, Markit manufacturing PMI and the regional gauge of the manufacturing sector by the Philly Fed are all due, ahead of speeches by Fed’s Lacker and Bullard and Budesbank’s J.Weidmann. Against the backdrop of increasing market chatter regarding the possibility of a December QE taper and the recent rumours around the ECB, Analyst Allen von Mehren at Danske Bank, commented, “This divergence in monetary policy outlook between the ECB (soft) and Fed doing tapering (hawkish) is exactly the reason why we believe EUR/USD will drop to 1.26 during the course of 2014”.
EUR/USD key levels
At the moment the pair is up 0.06% at 1.3440 and a breakout of 1.3441 (high Nov.21) would bring 1.3454 (MA10d) and then 1.3584 (high Nov.20). On the downside, the initial support lines up at 1.3390 (low Nov.13) ahead of 1.3359 (low Nov.12) and finally 1.3345 (low Nov.11).
EUR/USD focus on US docket
With the mixed PMI readings in the rear mirror view, market participants are now looking to the releases across the pond for another source of volatility. The weekly report on the US labour market, Markit manufacturing PMI and the regional gauge of the manufacturing sector by the Philly Fed are all due, ahead of speeches by Fed’s Lacker and Bullard and Budesbank’s J.Weidmann. Against the backdrop of increasing market chatter regarding the possibility of a December QE taper and the recent rumours around the ECB, Analyst Allen von Mehren at Danske Bank, commented, “This divergence in monetary policy outlook between the ECB (soft) and Fed doing tapering (hawkish) is exactly the reason why we believe EUR/USD will drop to 1.26 during the course of 2014”.
EUR/USD key levels
At the moment the pair is up 0.06% at 1.3440 and a breakout of 1.3441 (high Nov.21) would bring 1.3454 (MA10d) and then 1.3584 (high Nov.20). On the downside, the initial support lines up at 1.3390 (low Nov.13) ahead of 1.3359 (low Nov.12) and finally 1.3345 (low Nov.11).