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.
Euro hit by PMI reports
EUR/USD is trading at $1.3265 and is broadly unchanged on the day. The single currency was in the process of pulling back its losses when the eurozone revealed a decline in manufacturing and services.
The currency pair is under pressure from both angles; last night a number of Fed members voiced their concerns about inflation levels which lead to a rally in the US dollar, and this morning we were given further proof that the eurozone economy is slipping.
The Russian sanctions have not yet trickled down into the economy, but the longer the standoff continues increases the likelihood of manufacturing and services slipping.
The US will announce the jobless claims figures at 1.30pm (London time), and analysts are expecting a reading of 303,000. A dip below the 300,000 mark could drive the euro towards $1.32, while a soft report might see the euro pull back to $1.3335.