EUR/USD sits near flat levels ahead of PMI data
With most major currencies looking sluggish for the most part, EUR/USD isn't an exception as the pair trades within a 16 pips range so far today. Currently, the pair is holding near flat levels with the next key risk event being the release of euro area PMI data in the next hour.
Barring any major surprises, the readings should reaffirm some steadiness in the services sector which has helped to offset the dreadful manufacturing sector in the region this year. Given that the French, German and Eurozone readings are final releases, they should not pack a big punch unless the figures deviate substantially from initial estimates.
As such, the bigger focus for EUR/USD price action will involve large expiries seen around 1.1290-00 - in the region of €4.3 billion. That will put a cap on price movements to the upside amid swing region resistance in the pair around 1.1310-15 seen this week.
I reckon unless there are major headlines to follow, price action could be a bit more muted in the European morning as traders continue to digest ongoing global economic developments as well as the US-China trade truce from the weekend.
Also, with little on the data docket and a US holiday tomorrow, the focus will quickly shift towards the non-farm payrolls release on Friday.
