The euro remained lower after falling yesterday, with a Purchasing Managers Index due tomorrow forecast to show manufacturing in the region contracted for the first time in 16 months, adding to the case for more stimulus.
The 18-nation currency slid the most in a week yesterday as billionaire hedge-fund manager David Tepper said investors should sell it because of the European Central Bank’s policies. Australia’s dollar erased declines as data showed annual consumer-price gains slowed in line with economists’ forecasts. The U.S. dollar is little changed this week against major peers ahead of a report that may signal consumer prices stagnated in September after declining the previous month.
“The risks to the PMIs is for more disappointment and I can see the euro heading back down again,” said Joseph Capurso, a currency strategist at Commonwealth Bank of Australia in Sydney. “The euro may find support around the $1.26 level.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.