Daily FX strategy for EUR

Quotes from Lloyds Bank: -EUR/USD made news lows yesterday but actually help up relatively well given very weak German factory orders data, a much weaker than expected Q2 Italian GDP print and more chatter about geopolitical risks in the Ukraine. The EUR decline continues to be more of a grind than a collapse, but it is likely to be sensitive to the tone of Draghi’s press conference today. -There is no real likelihood of any change in ECB policy, but the market will be looking for Draghi’s take on the latest weak Eurozone inflation data, the latest weak German and Italian data, and the BES issue. -We suspect Draghi will do his best in this case to talk up the prospects of the Eurozone and help bolster confidence – there is no advantage to him or the ECB in a return of negative sentiment towards the Eurozone especially with the EUR already at much lower levels. This may be enough to stall EUR weakness for the moment, though it remains vulnerable to further weak data.

Source: FxWire Pro