EUR/USD in red, wobbles around 1.1600
- Spot keeps the tight range around 1.1600.
- Dollar remains sidelined just below 95.00.
- The pair ignored PMIs, EMU’s producer prices.
The offered mood stays unchanged around the European currency at the beginning of the week, with EUR/USD now prolonging the sideline theme around 1.1600 the figure, down smalls for the day.
EUR/USD found support near 1.1580
Spot is down for the second consecutive session so far on Monday, testing lows in the 1.1585/80 band amidst marginal gains surrounding the greenback and subdued trading conditions.
Market participants keep adjusting to the recent payrolls figures, while the divergence in monetary policy between the Federal Reserve and the European Central Bank coming to the fore as driver of the pair’s price action.
In fact, according to CME Group’s FedWatch tool, the probability of a rate hike by the Fed at next month’s meeting is around 97%. In addition, there are no further headlines regarding the US tax reform plan
On the positioning front, EUR speculative net longs decreased to the lowest level since September 19 in the week to October 31, as shown by the latest CFTC report.
In the data space, German final services PMI missed estimates for the month of October, while the EMU’s gauge surprised to the upside. Further data saw producer prices in the euro area rising 0.6% MoM and 2.9% on a year to October and the Sentix index coming in above expectations at 34.0 for the current month.
EUR/USD levels to watch
At the moment, the pair is losing 0.16% at 1.1586 and a break below 1.1575 (low Oct.27) would target 1.1448 (high Jun.30) en route to 1.1272 (200-day sma). On the upside, the next up barrier is located at 1.1663 (10-day sma) seconded by 1.1735 (21-day sma) and then 1.1837 (high Oct.26).