The Euro is once again failing to find direction in today’s trading session and remains stuck within a tight trading range as positive data from the Eurozone was offset by strong business figures from the US.
Economic data released from the Eurozone showed Industrial Production figures coming in at 1.5% on a monthly basis in July, which was well above analysts’ expectations for a figure of 0.6% and shows Europe is well on its way to economic recovery and the worst of the pandemic may be behind.
The Euro may well have finished the day on a strong note if it wasn’t for a release by the Federal Reserve Bank of New York which reported the Empire State Manufacturing Index jumped to 34.3 in September, a sharp increase from the 18.3 figure in August.
Industrial Production figures also came in strongly rising by 0.4% in August and also shows the worlds biggest economy is on the right track with regards to economic recovery.
Looking ahead to today, European Central Bank President Christine Lagarde, is scheduled to deliver a speech around lunchtime which may give the Euro a boost against its US counterpart if she confirms the cautious optimism in economic recovery recently conveyed by the other ECB policymakers of the bloc.
The main driver however of the EUR/USD currency pair today will be weekly employment data from the US, with the release of the Initial jobs claims figure, as well as Retail sales numbers for August which is a key indicator of consumer confidence, and a good set of figures will put the US Federal Reserve in the spotlight with regards to reducing their stimulus program.
The EUR/USD currency pair has now been stuck between the $1.1800 and the $1.1850 channel for a 7th straight day with the former providing solid support and for now it seems as if this will hold strong.
Besides the $1.1850 mark, the 50 day EMA is also proving to be a strong resistance level at the moment for the Euro, and the retails sales figures and employment data later today from the US will more than likely dictate whether this continues to be a sticking point.