EUR/USD pivots around the 1.13 handle in search of further direction
EUR/USD trades in a narrow range so far today
Currencies remain relatively calm as traders have to weigh between a softer mood in the equities space and a much calmer mood in bonds to start the day. That is leaving for a bit of a lack of direction among major currencies and EUR/USD is no exception as the pair trades near flat levels currently.
Buyers and sellers are still doing battle around the 1.1300 handle with downside support seen around 1.1280-90 as well while upside remains limited just above the 1.1310 level.
The dismal German data from Friday was what triggered a snowball effect in markets and that kept the euro on the back foot throughout. But currently, we're seeing some calm but just be wary of the Ifo business climate survey to come at the top of the hour.
I reckon markets are still on edge since last Friday and all it takes is one really sour headline to cause a bit of panic once again. A dip in the Ifo release later wouldn't set off much alarm bells but something along the lines of the PMI data disappointment may very well be enough for traders to act upon.
Otherwise, we may have to wait until US trading for further clues on which theme markets will focus on between the mood seen in equities and bonds.