Today’s eurozone retail PMI has come in better than expected, and will have given the markets a bit of a boost. However, this PMI figure is still below the important 50 level.
We have now entered a relatively quiet period as far as politicians are concerned, as they benefit from even longer summer holidays than the average school teacher. The almost two-month-long break from their frequent attempts to gain column inches, normally by making outrageous claims, has created a calmer environment in the EU. Without these comments to trigger moves, the currency markets have reverted back to a more fundamental assessment of true value.
As Brenda Kelly stated yesterday, the key levels to watch for EUR/USD would be a close above the 1.3320 level or below the 1.3250 level. As at early afternoon today, the current rate is sitting in the middle of this range at 1.3288, without really showing much interest in a breakout on either side.