EUR/USD below $1.2600
It has been sometime since the economic data releases coming from the eurozone have surprised traders in a positive way. Today’s miss by the eurozone’s final manufacturing PMI figures will not come as too much of a shock.
Tomorrow’s European Central Bank press conference, and the update that ECB president Mario Draghi will give, is expected to be the leading indicator for the EUR/USD pair. Due to the timing of the next bank stress tests, the take up in the targeted long-term refinancing operations fell some way short of what the markets would have been hoping for. Once these tests are out the way there is a chance the next tranche in December will be more widely utilised.
EUR/USD yesterday broke below the $1.2600 level and so far is showing little inclination in swiftly breaking back above that.