EUR/USD hovers over daily lows near 1.1860

The selling pressure around the shared currency remains well and sound at the end of the week, with EUR/USD now orbiting around 1.1860/70.

EUR/USD offered on ISM, ECB

Spot stays near session lows after the US ISM manufacturing surprised markets to the upside today, rising above expectations to 58.8 during August. In the same line, Markit’s manufacturing PMI ticked higher to 52.8 in the same period, beating consensus. On the not-so-bright side, consumer sentiment tracked by the Reuters/Michigan index dropped to 96.8 during last month.

The pair quickly reverted the spike to the area of 1.1980 following the poor prints from US non-farm payrolls (156K) after headlines suggested the ECB might delay until December any decision on monetary conditions in the region.

Earlier in the session, ECB’s E.Nowotny noted that as long as inflation stays low, there should be no perspectives for higher rates. Still with the ECB, VP V.Constancio noted the solid pace of the economic recovery in the bloc.

EUR/USD levels to watch

At the moment, the pair is losing 0.32% at 1.1871 facing the next down barrier at 1.1851 (low Sep.1) followed by 1.1823 (low Aug.31) and finally 1.1818 (21-day sma). On the upside, a break above 1.1923 (high Sep.1) would open the door to 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop).