1 Aug 2013
EUR/USD keeps lows around 1.3240
FXstreet.com (Edinburgh) -The demand for the shared currency remains subdued on Thursday despite the overall positive results from the manufacturing PMI, keeping the EUR/USD in the lower end of the range.
EUR/USD under pressure on ECB
It seems market participants are positioning for a dovish tone from the ECB gathering due today. Expectations point to President Mario Draghi to confirm the last ‘low/lower rates for longer’, and at the same time to acknowledge the incipient recovery in the region. In the opinion of Geg Gibbs, FX Strategist at RBS, “RBS Economics agrees no change, but thinks the decision goes down to the wire, with some members expected to favour a cut. They see more chance that the policy rate is cut than the guidance further enhanced, but both are likely to be discussed”.
EUR/USD levels to consider
As of writing the pair is retreating 0.53% at 1.3231 and a breach of 1.3207 (low Jul.31) would expose 1.3166 (low Jul.25) ahead of 1.3164 (low Jul.23). On the upside, resistance levels line up at 1.3311 (high Aug.1) followed by 1.3345 (high Jul.31) and finally 1.3417 (high Jun.19).
EUR/USD under pressure on ECB
It seems market participants are positioning for a dovish tone from the ECB gathering due today. Expectations point to President Mario Draghi to confirm the last ‘low/lower rates for longer’, and at the same time to acknowledge the incipient recovery in the region. In the opinion of Geg Gibbs, FX Strategist at RBS, “RBS Economics agrees no change, but thinks the decision goes down to the wire, with some members expected to favour a cut. They see more chance that the policy rate is cut than the guidance further enhanced, but both are likely to be discussed”.
EUR/USD levels to consider
As of writing the pair is retreating 0.53% at 1.3231 and a breach of 1.3207 (low Jul.31) would expose 1.3166 (low Jul.25) ahead of 1.3164 (low Jul.23). On the upside, resistance levels line up at 1.3311 (high Aug.1) followed by 1.3345 (high Jul.31) and finally 1.3417 (high Jun.19).