The eurozone still has questions hanging over it as to when and what the European Central Bank will decide to do in order to tackle low inflation rate. ECB president Mario Draghi has mentioned on numerous occasions that the bank has a number of options available at its disposal to tackle this issue, but has so far been reluctant to elaborate on what these are. Even without a clear picture on this the currency market appears to be willing to give the ECB the benefit of the doubt; however, this goodwill can only last so long without any further clarity.
On the flipside of the equation, the US has a number of pieces of economic data coming out today that could see sentiment change. Over the afternoon session we will see monthly core CPI data along with the latest US unemployment claims and the Philadelphia Federal Manufacturing Index.
Although markets have headed south since my colleague Chris Beauchamp wrote about the currency cross, I would have to agree that this drift lower still feels like a short-term move and is susceptible to a reversal.