Today better than expected PMIs from Europe and unemployment rate of GBP (yesterday) has kept USD under pressure. We have seen sharp decline in DXY. Unemployment claim and home sales of US are yet to come today.
Today Euro gain 117 pips against Greenback on account of improving German, French and Euro zone Manufacturing & Service PMI. Today DXY open at 81.28and decline by 51 pips at 80.85. Sterling has also gained approximately 35 pips to 1.6595.
Unemployment claim is expected slightly higher than last reading 326K last week. However it is still in lower range of dataset. Flash PMI for US is expected to be 55.2 which is higher than last reading 54.4. Existing home sales is also expected to improve slightly at 4.94 million. This dataset if comes as per expectation may support USD.
These days markets are in waiting mode, it will get direction once tapering process is clear. Looking at data it seems that it may not take place in next meeting. We are also witnessing decrease in inflation in case of Europe, if continue it may keep EUR under check.
We expect to see range bound movement till next FED meeting. Today data may not initiate any change of trend but small correction within given trend.