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1 Nov 2013
EUR/USD anchored around 1.3550
FXstreet.com (Edinburgh) -The shared currency remains mired in a narrow consolidation pattern, taking the EUR/USD to 1.3550/55 on Friday.
EUR/USD muted on Chinese data
The pair ignored the upbeat results from the key manufacturing sector in China, with both NBS and HSBC gauges improving to 51.4 and 50.9, respectively for the month of October. There will be no data releases in the euro area, leaving investors to focus on the critical US ISM Manufacturing (55.0 exp.) and the manufacturing PMI sponsored by Markit. Fedspeak by Bullard, Kocherlakota and Lacker could also bring in some volatility to the markets after the recent FOMC meeting. “The EUR-USD may remain top heavy in the near term if market speculation towards a dovish ECB next week continues to mount. In this environment, our preference would be for a sell-rally posture with risks skewed towards 1.3500 and then the 55-day MA (1.3477)”, observed Emmanuel Ng, Strategist at OCBC Bank.
EUR/USD levels to watch
As of writing the pair is losing 0.20% at 1.3555 with the immediate support at 1.3516 (low Oct.17). On the flip side, a surpass of 1.3649 (MA21d) would aim for 1.3696 (low Oct.30) and then 1.3739 (high Oct.31).
EUR/USD muted on Chinese data
The pair ignored the upbeat results from the key manufacturing sector in China, with both NBS and HSBC gauges improving to 51.4 and 50.9, respectively for the month of October. There will be no data releases in the euro area, leaving investors to focus on the critical US ISM Manufacturing (55.0 exp.) and the manufacturing PMI sponsored by Markit. Fedspeak by Bullard, Kocherlakota and Lacker could also bring in some volatility to the markets after the recent FOMC meeting. “The EUR-USD may remain top heavy in the near term if market speculation towards a dovish ECB next week continues to mount. In this environment, our preference would be for a sell-rally posture with risks skewed towards 1.3500 and then the 55-day MA (1.3477)”, observed Emmanuel Ng, Strategist at OCBC Bank.
EUR/USD levels to watch
As of writing the pair is losing 0.20% at 1.3555 with the immediate support at 1.3516 (low Oct.17). On the flip side, a surpass of 1.3649 (MA21d) would aim for 1.3696 (low Oct.30) and then 1.3739 (high Oct.31).