MarketPulse | Oct 01, 2014 06:44AM ET
The EUR/USD has posted slight losses on Wednesday, as the pair trades at the 1.26 line. The euro continues to wobble and has shed close to 100 points so far this week. Spanish and Eurozone Manufacturing PMIs met expectations, and the Italian release pushed above the 50-point-level. In the US, the markets are keeping an eye on two key events – ADP Non-Farm Employment Change and ISM Manufacturing PMI. The markets are not expecting significant changes from last month’s readings.
The euro remains under strong pressure, and fell over 100 points on Tuesday before partially recovering. It’s been a disastrous September for the euro, which has shed over 500 points against the US dollar. The euro reacted sharply to the Eurozone CPI reading of 0.3%, which matched the forecast but was weaker than the 0.4% gain in August. The inflation rate has now been under 1% for twelve straight months, way off the ECB’s target of just below 2%. On Monday, German Preliminary CPI posted a flat reading of 0.0% for the second straight month. The ECB is feeling the pressure to act, but as Mario Draghi knows all too well, there isn’t any magic formula to creating inflation and improving economic growth.
The markets are keeping a close eye upcoming US employment numbers, starting with ADP Nonfarm Payrolls later on Wednesday. The estimate stands at 207 thousand, little changed from 204 thousand. The ADP release precedes the official NFP release which will be published on Friday. The markets are anticipating a sharp gain, with an estimate of 216 thousand. If the indicator does follow suit with better numbers this month, the US dollar could post further gains against its major rivals.
US Pending Home Sales posted a decline of 1.0%, compared to last month’s gain of 3.3%. The important housing indicator has shown strong movement, resulting in readings that have been well off market estimates. US housing indicators continue to paint a mixed picture, as New Home Sales jumped last month, while Existing Home Sales softened and was well short of expectations.
EUR/USD October 1 at 9:25 GMT
EUR/USD 1.2606 H: 1.2632 L: 1.2585
EUR/USD Technical
S1 | S2 | S1 | R1 | R2 | R3 |
1.2286 | 1.2407 | 1.2518 | 1.2688 | 1.2806 | 1.2905 |
Further levels in both directions:
OANDA’s Open Positions Ratio
EUR/USD ratio is pointing to gains in short positions on Wednesday, continuing the trend seen a day earlier. This is consistent with the pair’s movement, as the euro has posted small losses on the day. The ratio has a majority of long positions, indicative of trader bias towards the euro reversing direction and moving to higher ground.
GBP/USD Fundamentals
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.