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EUR/USD – Unchanged as Markets Eye US Employment, Manufacturing Reports

EUR/USD continues to have an uneventful week, as the pair trades at the 1.14 line on Thursday. On the release front, French CPI posted a sharp decline of 1.0%. Eurozone Current Account dipped to EUR 17.8 billion, well below expectations. In the US, there are two key releases on the calendar – Unemployment Claims and the Philly Fed Manufacturing Index. The markets are expecting stronger readings from both indicators.

Is an agreement in sight between Greece and its creditors? Eurozone finance ministers were unable to draft an agreement on Monday, but the finance ministers will try again on Friday. Greece has apparently requested an extension of the bailout, which expires next week. However, the details of the request are not clear, and the parties will likely conduct tough negotiations at the Friday meeting. The stakes are high, since if the bailout does not continue, Greece could be forced to leave the Eurozone and abandon the euro.

On Thursday, the ECB takes a major step aimed at improving transparency, as the central bank will publish a summary of its policy meeting for the first time. This should make for interesting reading, as the ECB decided to implement its QE program at its previous meeting. The publication of the minutes will bring the ECB in line with other central banks such as the Federal Reserve and the BOJ.

On Wednesday, the Federal Reserve released the minutes of its previous policy meeting. The minutes were decidedly dovish in nature, as Fed policymakers raised concerns that a mid-year rate hike could hurt the economic recovery. The Fed also said it was worried about the impact of global events on the US economy, such as the slowdown in China and the Greek financial crisis. With US inflation at low levels, the Fed is not in any rush to raise rates, so speculation of a mid-year rate may have been premature.

EUR/USD for Thursday, February 19, 2015

EUR/USD February 19 at 11:50 GMT

EUR/USD 1.1397 H: 1.1449 L: 1.1385

 

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1154 1.1231 1.1340 1.1426 1.1525 1.1634

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio is almost unchanged on Thursday. This is consistent with the lack of movement we’re seeing from the pair. The ratio has a majority of short positions, indicative of trader bias towards the euro moving lower.

EUR/USD Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

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.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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