FX Daily Wrap Up

The EUR/USD traded in tight ranges today after shrugging off its only major indicator – the Institute of Supply Managers’ non-manufacturing report. Not even the better-than-expected print could move the market from its well-established technical levels, even though the ISM service sector report was expected to sway the market in favor of the US Dollar. With January’s survey jumping to an 8-month high of 59.0, the bulls should have been in control, yet a modest 15 pips later, they hardly produced the expected results. Service-based businesses make up an estimated 80 percent of the US economy, and the read was an affirmation for the Federal Reserve policy board that the economy is indeed growing at a “moderate” pace in the medium-term. As we head into the Asian session, the EUR/USD is trading at 1.2928 in what appears to be light trading. David Hilgeman, XPRESSTRADE Analyst