4 Sep 2013
EUR/USD dips to 1.3160 on softer EMU PMI
FXstreet.com (Edinburgh) -The EUR/USD quickly dropped to fresh lows in sub 1.3160 levels after August’s services PMI in the euro area failed to meet expectations.
EUR/USD remains choppy
Mixed data from August’s services PMI prints from euro zone members are keeping the pair within the 1.3160/80 range on Wednesday, after improvements from Germany, France and Spain opposed pullbacks from Italy and the bloc as a whole. Next on tap will be EMU’s Retail Sales, with the median pointing to a monthly expansion of 0.4% during July and a contraction of 0.4% over the last twelve months. Frank Oland, Senior Analyst at Danske Bank, commented, “The move lower in EUR/USD indicates that the cross is currently trading on whether or not the Fed will start its tapering this month. Hence, near-term risks still look skewed to the downside for EUR/USD as a September tapering, in our view, looks very likely and as trading accounts, according to the latest IMM data, are speculatively long EUR at the moment”.
EUR/USD key levels
At the moment the pair is now losing 0.04% at 1.3165 and a breakdown of 1.3138 (low Sep.3) would target 1.3115 (low Jul.22) en route to 1.3089 (low Jul.19). On the upside, the initial hurdle lines up at 1.3197 (high Sep.3) ahead of 1.3219 (low Aug.29) and finally 1.3237 (high Sep.2).
EUR/USD remains choppy
Mixed data from August’s services PMI prints from euro zone members are keeping the pair within the 1.3160/80 range on Wednesday, after improvements from Germany, France and Spain opposed pullbacks from Italy and the bloc as a whole. Next on tap will be EMU’s Retail Sales, with the median pointing to a monthly expansion of 0.4% during July and a contraction of 0.4% over the last twelve months. Frank Oland, Senior Analyst at Danske Bank, commented, “The move lower in EUR/USD indicates that the cross is currently trading on whether or not the Fed will start its tapering this month. Hence, near-term risks still look skewed to the downside for EUR/USD as a September tapering, in our view, looks very likely and as trading accounts, according to the latest IMM data, are speculatively long EUR at the moment”.
EUR/USD key levels
At the moment the pair is now losing 0.04% at 1.3165 and a breakdown of 1.3138 (low Sep.3) would target 1.3115 (low Jul.22) en route to 1.3089 (low Jul.19). On the upside, the initial hurdle lines up at 1.3197 (high Sep.3) ahead of 1.3219 (low Aug.29) and finally 1.3237 (high Sep.2).