EUR/USD below 1.36

 The 1.36 level remains something of a barrier to upside for the pairing.

Data coming from the eurozone today has indicated that retail sales remain in contraction and that private sector lending is floundering. This may well invite a Bank of England Funding for Lending style long-term refinancing operation package for European banks, in a bid to spur this declining but important part of the euro.

We would need to see the euro retake the bullish channel from early July lows for a stronger bias at this juncture. Currently, selling of EUR/USD is taking place at the 1.3625 level, and while below 1.36 there is a chance of a pull back to 1.3490.

With the US closed for the Thanksgiving holiday, the likelihood of a range-bound trading session for the next few days is increased.

Spot FX EUR/USD chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.