It’s a holiday in the US, so I’m taking all market moves today with a grain of salt, but the general theme is to sell the US dollar, perhaps in a delayed reaction to yesterday’s weak ISM services reading (dropped to a four-year low).
Over the past few hours, the euro has taken advantage of this situation and is now up by about 25 pips on the day to reach 1.0811.
EUR/USD 10 minutes
The pair is now approaching the weekly high of 1.0817. A break of this level would be the best level since June 11.
This is the fourth day of gains for the euro as the market recovers from initial anxiety over the French elections. Looking at it from a broader perspective, the euro has been in the middle of a range since February and is looking for a reason to move. German manufacturing and industrial orders figures were weak today, with orders falling by 1.6% compared to 0.5% expected.
However, there is concern in the US, as well as lower growth figures.