EUR USD continued to trade below a key level yesterday as the economic calendar was relatively subdued. Greenback momentum continued to push lower as economists’ prepare for this month’s pivotal central bank meetings from the Fed and ECB. The ECB is expected to deliver some sort of stimulus on Thursday, likely to be a combination of a -10 basis point deposit rate cut and an adjustment of the current Quantitative Easing program. Markets cautiously trade the Dollar ahead of this week’s key non-farm payrolls figure and this month’s FOMC rate decision.
Yesterday afternoon the US released a raft of medium tier data. Although the market remained relatively stable the poor data could set the tone for this week’s key labour market number. Both US pending home sales and Chicago PMI failed to meet market expectations. Pending Home Sales registered a poor 0.2%, whilst Chicago PMI contracted at 48.7.
A host of PMI data is released today, firstly from China as in the early hours they post their manufacturing PMI figure which is to remain in contraction but only just, with forecasts at 49.9. From the Eurozone the PMI for manufacturing is also released followed by the unemployment rate which currently sits at 10.8%. The UK and US are set to see their manufacturing PMI’s remain the same as previous readings.