The fact that EUR/USD is trading within a 15 pips range juts above 1.0800 speaks to how slow things are moving in the European session so far. The pair is near flat levels, holding just above the figure level with large option expiries also in play here.
The confluence of the 100 (red line) and 200-day (blue line) moving averages at 1.0789-02 is also helping to add to some added interest around the current levels. So, traders are trying to find more conviction to shake that off.
Coming up later, there is the US weekly jobless claims and the PPI report. That might offer something for traders to work with in the day ahead.
Looking to other dollar pairs, USD/JPY is up 0.3% to 157.18 as yields stabilise a little more after the Fed yesterday. But elsewhere, it’s been a bit of a drag so far in European morning trade.
USD/CHF is up 0.1% to 0.8955, USD/CAD up 0.1% to 1.3745, and AUD/USD is down 0.2% to 0.6650. All three pairs also have large option expiries weighing on trading action before we get to the US session later.
It’s not exactly turnaround Thursday but the post-CPI reaction has definitely been tamed, at least for now. We’ll see what the next set of US data will bring to the table later.
This article was written by Justin Low at www.forexlive.com.
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