EUR/USD fades the spike to 1.0880

FXStreet (Edinburgh) - After a brief adventure to session peaks near 1.0880, EUR/USD has now deflated towards the mid-1.0800s although it keeps the positive tone.

EUR/USD muted on EMU data

The pair has remained apathetic after EMU’s GDP figures have matched expectations during the third quarter, expanding 0.3% QoQ and 1.6% over the last twelve months.

There are no further releases in Euroland today, while JOLTS Job Openings and the IBD/TIPP Economic Optimism will take centre stage in the US calendar in an otherwise uneventful session.

EUR/USD levels to consider

At the moment the pair is up 0.01% at 1.0847 with the next hurdle at 1.0983 (high post-ECB Dec.3) ahead of 1.1033 (200-day sma) and then 1.1124 (61.8% Fibo of 1.1496-1.0524). On the other hand, a break below 1.0753 (23.6% Fibo of 1.1496-1.0524) would aim for 1.0524 (low Dec.3) and finally 1.0519 (low Apr.13).

Dec 8, 2015

UK’s manufacturing output declines in October, industrial output better than expected

The Office for National Statistics today reported a fall in UK’s manufacturing output for October. Manufacturing output was expected to stagnate in October. It fell 0.4 per cent month on month, lower than September’s 0.9 per cent increase. Manufacturers have been particularly hurt by low oil prices. Year on year comparison shows manufacturing output came in 0.1 per cent lower than the same period last year, once again falling short of 0.1 per cent rise estimated. Manufacturing output remains around 6.1 per cent below the level that it had reached when at peak. Today’s manufacturing data dims hope that this sector will contribute to raise over all growth in this fiscal.

Draghi’s credibility goes for a toss? – Lloyds Bank

Research Team at Lloyds Bank, suggests that against a backdrop of previous bouts of aggressive policy delivery in excess of market expectations and persistently strong hints by President Draghi about the importance of raising euro area inflation as quickly as possible, the recent policy loosening by the ECB greatly disappointed.