News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Overlooks Eurozone Retail PMI As ECB Meeting Looms Ahead

EUR/USD Overlooks Eurozone Retail PMI As ECB Meeting Looms Ahead

Edward Hyon,

Talking Points:

  • Eurozone Retail PMI (August): 45.8 Actual Vs 47.6 Prior.
  • EUR/USD Firmly below 1.3200 and Overlooks Eurozone Retail PMI Data..
  • Looking Ahead ECB Rate Decision and Press Conference from Mario Draghi.

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The August Eurozone Retail PMI came in at 45.8 compared to the prior month’s reading of 47.6. It was the lowest reading in 15-months and missed market expectations calling for 47.6. The Euro remained relatively muted against the US Dollar as traders may see this economic data as less significant in the upcoming monetary policy decision. EUR/USD remained firmly below the critical 1.3200 level.

Being watchful ahead, the much anticipated September European Central Bank (ECB) Rate Decision followed by ECB’s Chief Mario Draghi Press Conference will take center stage at 11:45 and 12:30 GMT respectively. Market seems to be prepared for an expansion of stimulus subsequent to the dovish rhetoric made by Mario Draghi at the Jackson Hole Symposium last month. On that note, DailyFX Currency Strategist Ilya Spivak suggest for a possible disappointment, which would come against a backdrop of heavily skewed anti-Euro positioning.

Taking technical analysis into consideration, Ilya Spivak mentions near-term support to rest at 1.3104 (September 2013 low) and near-term resistance at 1.3151 (76.4% Fib Expansion). He is short EUR/USD at 1.3644 in line with his long-term fundamental outlook. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the EUR/USD stands at 1.85 as 65 percent of traders are long.

EUR/USD 5 Minute Chart

EUR/USD Overlooks Eurozone Retail PMI As ECB Meeting Looms Ahead

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES