EUR/USD sits at 1.3800, pretty much where it closed out Wednesday in North America.
Market now awaits ECB rate decision and subsequent Trichet press conference. Rates almost certain to be kept on hold. Market will monitor Trichets’ comments, looking to see just how hawkish his tone is on inflationary pressures.
Euro zone data due for release this morning:
08:45 GMT: Italian services PMI for January expected 50.5 from 50.2
08:50 GMT: French services PMI for January (final) expected 57.1
08:55 GMT: German services PMI for January (final) expected 60.0
09:00 GMT: Euro zone services PMI for January (final) expected 55.2; composite 56.3
10:00 GMT: Euro zone retail sales for December expected +0.5% m/m, +0.2% y/y
12:45 GMT: ECB rate decision
13:30 GMT: Trichet press conference
Buy orders seen clustered 1.3770/80, sell stops through 1.3765 before more buy orders 1.3725/45. Sell orders 1.3830/40. If I knew where buy stops were we’d have a full set. But I don’t, so we haven’t.
