EUR/USD: Weaker in Asia, eyes Wednesday’s low

By FXStreet FXStreet (Mumbai) – EUR/USD kick-off the week on a weaker note, extending its recent bearish momentum to trade near multi-month lows ahead of 1.06 handle.

EUR/USD trades below all major DMAs

Currently, the EUR/USD pair trades -0.07 lower at 1.0639, within a shouting distance of the fresh seven-month lows struck at 1.0615 on last Wednesday. The shared currency remains pressured against its American counterpart as markets have almost priced-in a QE expansion/extension by the ECB as we step into the last week before their Dec 3 meeting.

Moreover, the recent streak of weak Euro zone economic data only suggests a weak recovery while Friday’s comments by ECB Chief Draghi, reiterating that the central bank is ready to do more if needed, further adds to the ongoing euro weakness.

While on the other side of Atlantic, the Fed remains set to raise rates next month with the upcoming NFP report next week to further confirm such a move. While the week ahead holds the key durable goods orders and prelim GDP from the US in a run up to the Fed Dec 17 showdown.

In the day ahead, a series of flash manufacturing and services PMI from the Euro area will be reported along …read more

Source:: FX Street