August 15, 2024 at 09:11AM
It looked like the pair was on for a break yesterday after the US CPI report but the dollar didn’t end up weakening too significantly. Since then, price action has been a little tight for EUR/USD, with today’s range a measly 12 pips so far between 1.1003 to 1.1015. The reaction to the main event yesterday has been a little underwhelming to say the least.
Besides the aussie, most major currencies today are holding lightly changed overall. The pound is a little higher after the UK GDP numbers earlier but it doesn’t really tell us anything we don’t already know.
So, circling back to EUR/USD, the pair is also trading lightly changed just above 1.1000 as buyers contemplate a firmer break higher.
The overall risk mood is holding up today but that hasn’t quite translated much into FX just yet. There is of course still the US retail sales data to come later in the day.
But in the case of EUR/USD, there are also other factors in play. The most notable one being some large option expiries on the board for today and tomorrow. They are clustered around the 1.1000 level as noted here.
And that is arguably a pull factor in keeping price action more anchored, at least for the time being. That until broader markets find a catalyst to get the action this week running more strongly in the sessions ahead.
This article was written by Justin Low at www.forexlive.com.
