EUR/USD: significant impacts turns momentum – BTMU

By FXStreet FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that the momentum for EUR/USD looks to have turned and there have been significant events on both sides of this currency cross that points to limited upside scope over the short-term.

Key Quotes:

“The ECB appears much more worried about low inflation and the advance inflation estimate tomorrow should see the annual rate at zero percent. But if there is action from data releases, it is more likely to come from the US side.”

“The Employment Cost Index tomorrow is important – the surprisingly weak 0.2% print in Q2 triggered a big market move and tomorrow should see this Q/Q rate rebound to a more respectable 0.6% gain. Then next week the ISM Manufacturing Index and the ADP employment report will be the key releases shaping market expectations ahead of the NFP at the end of the week.”

“We would expect the ADP employment report to be consistent with some pick-up in jobs growth relative to the subdued NFP readings over August and September. After the FOMC statement there will be a lot of attention to Fed speakers.

Fed Presidents Williams (voter) George and Harker (non-voters) will speak as will Chair Yellen …read more

Source:: FX Street