EUR/USD dips back below 1.3700

There are more misses than hits in this morning’s EU manufacturing and service figures, leading EUR/USD to dip back below the 1.3700 level.

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.  

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.