EUR/USD flows: Holding pattern
Still a holding pattern after failure to move forward yet, ongoing tensions
Holding pattern for FX following not the most fruitful of developments since the weekend - no decision made on Friday with prickly comments around portraying fake victories, further military strikes by the US on air defences and ground control station and Iran on the airbase used, and Israel ordering troops to move further into Lebanon. The market is trying to keep the faith but oil has reversed Friday’s moves, up $3, and EUR/USD is back to sitting at circa 1.1650~ again after failing to hold the test higher at the close of last week.
Just final PMIs out of Europe and UK this morning. The China Caixin manufacturing PMI overnight slipped to 50 from 50.3 in line with expectations. ECB’s Pereira says need to act sooner rather than later on inflation, to avoid a greater second-round impact. Will have new estimates and data and make a decision [regarding whether would support a hike next meeting].