EUR Trading Outlook (18-09-2014)

EUR/USD opened in Asia at 1.2960, down from the Hilsenrath inspired climb to 1.2995 late Tuesday and continued to drift lower into Europe. Some order activity providing some direction from the early London 1.2943 low but offers back in the 60-70 area look to have slowed the recovery. The market now hunkering down ahead of the FOMC and Dollar bulls looking for any indications of a change in the Fed’s position with regard to tighter policy. Bids 1.2930-40 and offers 1.2960-70, 1.2980. Firmer EZ inflation on Aug revisions had little impact on the market and are unlikely to change the stance at the ECB. EUR/USD plays 1.2943-1.2966 on the day.