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.
Yesterday morning saw poor manufacturing data from Spain, which weighed on the euro. However, today the single currency is trading at $1.3585, up 0.3% on the day, as traders who were short yesterday have taken the opportunity to lock in profits.
Traders have shrugged off comments from former European Central Bank (ECB) member José Viñals, who indicated that the central bank still has room to reduce interest rates further. In early November the ECB cut interest rates to 0.25%, and now inflation is low while growth remains sluggish. This is why Mr Viñals believes further interest-rate cuts could be an option.
Traders are now looking ahead to the US ADP employment report due tomorrow at 1.15pm. This could provide an indication of what to expect from the unemployment-rate announcement at lunchtime on Friday. The Federal Reserve has tied its monetary policy to the jobless rate, and if the job market improves we could see traders selling EUR/USD.