EUR Trading Outlook (24-10-2014)

EUR/USD The EZ Oct PMI came i above f/c and EUR/USD covered a bit. The rally lifted the pair to a 1.2676 high just ahead of NY’s open. It sat just below that level as NY got going. The rally couldn’t push further. After the worse than f/c jobless claims were reported US bond yields and the USD firmed up as risk sentiment was buoyant. Even EUR/JPY’s rally from the 136.10/15 are to a high of 137.01 couldn’t lift EUR/USD. Instead EUR/USD slid lower for most of the NY session. The pair traded near 1.2630 into Europe’s close. The NY afternoon saw the pair range in the 1.2662//1.2638 range as the USD remained firm and EUR/JPY maintained its bid tone. Late in the day EUR/USD sat just above 1.2650. There is little major EZ data that will impact EUR. German Sep GfK consumer confidence and the UK’s Q3 GDP report are the main risks for EUR traders overnight. Unless there are major surprises to those data points EUR/USD may hold to its recent 1.2625/1.2845 range.