Traders are eyeing the EUR movement performance in the light of the US consumer price index due for release on Wednesday. This will give an indication on the pace of inflation and by extension, the rate of the USD against major currencies.
The euro’s climb against the pound has been halted today in anticipation of the UK’s ‘Super Thursday’ data. With the Bank of England releasing its interest rate decision and monetary policy meeting minutes GBP volatility is a real possibility today.
The EUR fell against the USD and CHF on Friday after its PMI only rose at 2.2%, its slowest rate in 5 months. The USD reacted positively to the NFP report, advancing against a basket of major currencies. Keep a close watch on the ECB President’s speech
The USD gets support from the FOMC statement but the general trend has not been reversed The GBP sustain its recent gains against the USD, but the EUR fell against the USD and GBP. All eyes on the EU Manufacturing PMI this morning. Traders are now waiting for the impact of the NFP and unemployment figures tomorrow.