01 Aug 2014 08:00GMT
EUR/USD - ... Euro languishes abv Wed's 8-1/2 month trough of 1.3366 in European morning. Price showed muted reaction to release of Markit Jul mfg PMI fm Italy, France, Germany & the EZ. The actual readings came in below market consensus (except France, Jul was 47.8 vs forecast of 47.8).
The lack of intra-day price swings in early European morning suggest further range trading wud continue as traders are keeping their powder dry until release of the key U.S. payrolls data at 12:30GMT. Offers are reported at 1.3495/05 with some stops abv there, then more offers are tipped at 1.3420/30. On the downside, some bids are touted at 1.3370-60 with continued market chatter of an option barrier at 1.3350, then stops are reported below there. Until the U.S. jobs report is out, selling euro on recovery is the way to go.
Earlier, with release of Markit Mfg PMI of several major countries in the EZ due out shortly, Reuters reported that inflationary pressures in the euro zone have risen to a 27-month high, suggesting the ECB's efforts to fend off deflation are working, an indicator designed to predict cyclical trends showed on Fri.
The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute (ECRI), rose to 96.7 in June from April's 96.2.
Annual inflation in the euro zone fell to just 0.4% in Jul, its lowest since the height of the financial crisis in 2009, official data showed on Thur. Therefore, most traders wud take this reading with a pinch of salt !
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