EUR struggles ahead of ECB meet – MP

FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, sees the EUR trading under pressure, weighted down by USD’s firm tone and disappointing European PMIs.

Key Quotes

“The mighty U.S dollar continues to maintain a firm tone against most currencies with the USD Index hitting fresh 11-year highs in the overnight session. Some dealers are noting that the USD Index is approaching the +50% retracement level of its global crisis moves from its 2001 highs to the 2008 lows (95.85). Owning the dollar has been a one directional trade for many months.”

“Tight trading ranges are the relative norm ever since crude prices seemed to have found a temporary bottom over the past few weeks.”

“Already this morning the lower revisions in numerous European PMI Services (Spain and Italy) have been adding to the EUR’s downward pressure.”

“The 19-member single currency is again probing the lower end of the €1.1100 region seen in January.”

“Better eurozone retail sales data (+1.1% m/m) is helping the currency to avoid the retreat from worsening.”

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