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.