EUR/USD Remains Near 1.27 Before PMI

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.”


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