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.
The euro has now pushed to highs not seen since February. The pullback in the US treasuries has been beneficial for European peripheral bond yields, but a stronger currency overall could be to the detriment of the currently weak eurozone recovery.
The US jobless claims have had a somewhat muted effect, coming in at 309,000 last week against an expectation of 330,000. Last week’s figure has now been revised, but only slightly, rising by 2000 to 294,000.
Existing home sales and the manufacturing index of the Federal Reserve Bank of Philadelphia are due out shortly. Any failure to meet consensus estimates will be met with a weaker dollar.
If EUR/USD keeps above the $1.3420 level the bias will be on the side of the single currency, and any protracted move through the intraday and long-term resistance level of $1.3560 could easily make way for a retest of the $1.37 highs seen earlier this year.