EUR/USD below 1.36

 The 1.36 level remains something of a barrier to upside for the pairing.

Data coming from the eurozone today has indicated that retail sales remain in contraction and that private sector lending is floundering. This may well invite a Bank of England Funding for Lending style long-term refinancing operation package for European banks, in a bid to spur this declining but important part of the euro.

We would need to see the euro retake the bullish channel from early July lows for a stronger bias at this juncture. Currently, selling of EUR/USD is taking place at the 1.3625 level, and while below 1.36 there is a chance of a pull back to 1.3490.

With the US closed for the Thanksgiving holiday, the likelihood of a range-bound trading session for the next few days is increased.

Spot FX EUR/USD chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.