euro to dollar

Euro vs Dollar Chart 5 Aug 2010

A dreary day of trading in the euro vs dollar characterised by thin volumes and a lack of sustained price action with the market drifting lifelessly between USD1.3235 and USD1.3190.  The interest rate decision today from the ECB came as no surprise to anyone, least of all the forex markets, with virtually no reaction to either the release or the subsequent statement, and with the prospect of low interest rates now looking highly likely for both the US and Europe trading in the euro vs dollar may become tedious in the extreme.  Tomorrow, of course, sees the release of the monthly non farm payroll data and should this mirror Wednesday’s ADP figures which came in slightly better than expected, we could see a short term positive reaction for the US dollar, sending the euro vs dollar lower as a result.  This would align with the technical picture which is currently looking increasingly weak at this level as the pair struggle to breach the US1.3250 price area and penetrate the sustained resistance immediately above.  Should tomorrow’s action be to the downside then any close below USD1.30 could signal a deeper move once we breach the 9 and 14 day moving averages.

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Tepid trading as markets wait for nfp