EUR/USD geared for a move higher - Draghi says little of significance, eyes on US inflation
Looking at the price action this morning, there are some clear themes at play - or at least trying to come into play. From a risk perspective, the CAD is moving alongside a fall in stock markets, while the JPY is also higher. AUD and NZD are doing very little as they have all week, so it falls upon USD/CAD to reflect much of the price action with Oil prices coming off to hit the point home.
Elsewhere, however, the EUR seems to be benefitting from the prospects of a weaker inflation number later on today. All the signs are there that we could get a soft number, which could push EUR/USD higher to test the next area of resistance at 1.1365-70.
Cable is also moving up as EUR/GBP is starting to lose its shine. Resistance in the 0.8910-40 area seems to have contained the relentless move higher we have seen in recent weeks, and the lack of Brexit news and better jobs report is giving the Pound some relief for now
For the EUR however, there were some expectations that president Draghi could shed some more light on ECB thinking at the press conference this morning, but there has been little so far.
As such, from here, we look for US data to impact on EUR/USD, and dips are being bought for now. The US data later today could see a little more action develop, with EUR/USD and Cable more likely to react, though USD/JPY could also be busy if we get to test back under 108.00 again - pre 109.00 was well offered as we anticipated.