2 Sep 2013
EUR/USD hovering over 1.3220, PMI eyed
FXstreet.com (Edinburgh) - The shared currency managed to regain the 1.3200 handle overnight, with the EUR/USD climbing from the proximities of 1.3190 to the current area of 1.3215/20, as markets are slightly tilted to the risk-on trade at the beginning of the week.
EUR/USD focus on PMI readings
The manufacturing sector in the euro area will be in the limelight on Monday, as the final prints from the manufacturing PMI are due during the European morning. Consensus points to better results during August, confirming the previous flash prints and remarking the cyclical recovery in the region. “EUR still faces significant headwinds from weak periphery growth and political risk remains high. The region is relying too much on net export demand and thus a high EUR will be self-defeating. However, as a region it now has a relatively strong external balance. Periphery risk has eased and ECB policy, while easier, has the weakest guidance. We prefer to sell EUR into strength, but it may continue to be range bound for some time”, suggested Greg Gibbs, FX Trading Strategist at RBS.
EUR/USD key levels
At the moment the pair is up 0.02% at 1.3217 with the next resistance at 1.3255 (high Aug.30) followed by1.3298 (low Aug.22) and finally 1.3322 (low Aug.27). On the downside, the initial support aligns at 1.3104 (50% of 1.2755-1.3453).
EUR/USD focus on PMI readings
The manufacturing sector in the euro area will be in the limelight on Monday, as the final prints from the manufacturing PMI are due during the European morning. Consensus points to better results during August, confirming the previous flash prints and remarking the cyclical recovery in the region. “EUR still faces significant headwinds from weak periphery growth and political risk remains high. The region is relying too much on net export demand and thus a high EUR will be self-defeating. However, as a region it now has a relatively strong external balance. Periphery risk has eased and ECB policy, while easier, has the weakest guidance. We prefer to sell EUR into strength, but it may continue to be range bound for some time”, suggested Greg Gibbs, FX Trading Strategist at RBS.
EUR/USD key levels
At the moment the pair is up 0.02% at 1.3217 with the next resistance at 1.3255 (high Aug.30) followed by1.3298 (low Aug.22) and finally 1.3322 (low Aug.27). On the downside, the initial support aligns at 1.3104 (50% of 1.2755-1.3453).