Euro is moving between gains and losses against the US dollar today. Trading has been choppy as Forex traders try to work through some of the uncertainty surrounding the two currencies.
Throughout today’s session, EUR/USD has been choppy, sometimes showing gains, and sometimes showing losses. A great deal of the choppiness is being attributed to uncertainty over what’s next for the central banks connected to the two currencies, as well as concern about what’s next for the global economy.
The latest Chinese economic data continues to show that the world’s second-largest economy is growing at a slower rate. On top of that, the latest data out of the United States, showing that PMI fell into contraction, is weighing on sentiment. This means the Federal Reserve may not reduce quantitative easing soon after all.
Of course, there are pressures on the euro as well. The ECB has indicated that more monetary easing might be employed, and that would mean a weaker euro. Euro weakness is now competing with possible dollar weakness, and that makes for some rather choppy trading today.
At 15:36 GMT EUR/USD has slipped lower to 1.3074 from the open at 1.3076, and off the high of 1.3102. However, it’s still above the session low of 1.3041. Choppy trading is expected for the remainder of the session.
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