24 Jul 2015
EUR/USD buoyant near 1.10
FXStreet (Edinburgh) - EUR/USD has ended the week on a positive tone, advancing since Tuesday along with a profit-taking sentiment in the US dollar and against a backdrop of scarce data releases and events both in Euroland and in the US economy.
Poor PMIs ignored
The risk-on sentiment started on the wrong footing early in the Asian trading hours, with the Chinese manufacturing PMI coming in softer than expected and extending the offered tone into the European session. The selling mood has taken over the risk-associated universe soon after in the European session in response to tepid readings from euro area flash PMIs, although the subsequent knee-jerk to the 1.0930 area was rapidly faded.
Cautiousness ahead of the FOMC
The greenback will take centre stage in the upcoming week in light of the key FOMC gathering on Wednesday. Consensus remains tilted to a USD-supportive tone from the statement (no press conference, no projections), mainly after the recent testimonies of Chairwoman J.Yellen and St. Louis Fed President J.Bullard, and with market expectations now reconsidering a potential lift-off in September.
That being said, the current upside momentum in the pair will be put to the test in the next sessions, with recent lows in the 1.08 neighbourhood acting as interim support and the 1.1200 area (pre-Greek vote tops) challenging occasional bullish attempts.
Poor PMIs ignored
The risk-on sentiment started on the wrong footing early in the Asian trading hours, with the Chinese manufacturing PMI coming in softer than expected and extending the offered tone into the European session. The selling mood has taken over the risk-associated universe soon after in the European session in response to tepid readings from euro area flash PMIs, although the subsequent knee-jerk to the 1.0930 area was rapidly faded.
Cautiousness ahead of the FOMC
The greenback will take centre stage in the upcoming week in light of the key FOMC gathering on Wednesday. Consensus remains tilted to a USD-supportive tone from the statement (no press conference, no projections), mainly after the recent testimonies of Chairwoman J.Yellen and St. Louis Fed President J.Bullard, and with market expectations now reconsidering a potential lift-off in September.
That being said, the current upside momentum in the pair will be put to the test in the next sessions, with recent lows in the 1.08 neighbourhood acting as interim support and the 1.1200 area (pre-Greek vote tops) challenging occasional bullish attempts.