EUR/USD in tight range

The euro/dollar currency pair is struggling for direction, caught in a tight 40-point range.

Markets are awaiting confirmation on the extent of tapering (if any) to be undertaken by the Federal open market committee (FOMC). All will be revealed at the Federal Reserve’s meeting, tomorrow afternoon (London time).

The $1.3370 level marks something of a barrier to any upside for EUR/USD and, with the end of Larry Summers' candidacy well and truly priced in to current levels, only a break through this resistance would give the euro bulls an edge to the upside.

Both German and eurozone ZEW economic sentiment have beaten market expectations, helping to keep the euro on the front foot and presumably doing wonders for Angela Merkel’s political campaign. The German indicator climbed from 42.0 to 49.6 points, beating the estimate of 45.3 points and showing the best level since April 2010.

US core CPI climbed by 0.1% in August, as expected, while overall CPI rose less than forecast. It would seem that until we get further detail on monetary policy and the pivotal economic forecasts for the US, the dollar crosses will continue to move sideways.

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.