Forex: EUR/USD drops after US manufacturing (Barcelona) - The US New York Empire State manufacturing index surprised investors negatively by falling from -5.22 to -8.1 in December, contrarying market consensus expectation of a ruse to -0.50. The decline post-release wasn't that sharp, as the EUR/USD remains very much stuck in a tight range and being held by 1.3150.

The October net long-term TIC flows eased from $3.2B to $1.3B. The September figure was revised lower from $3.3B. Around 18:00 GMT, investors will be watching Fed's Lacker speech.

“A local target is at 1.3280. In my opinion, today the price may fall down a little bit towards the level of 1.3120 and then continue moving towards the above-mentioned local target”, wrote Roboforex analyst Igor Sayadov, expecting a more serious correction later.