EUR/USD wrap-up: tight ranges ahead of key events - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the dollar edged modestly higher against the common currency this Wednesday, as the pair was unable to retain the 1.1200 mark. Majors were confined to tight corrective ranges, as investors turned cautious ahead of the upcoming BOE economic policy decision this Thursday.

Key Quotes:

"Key In the data front, European final services PMIs for July came in generally better-than-expected, with the EU reading up to 52.9 from a previously estimated 52.7, providing evidence that the economic expansion continues at a moderate pace in the region. Retail Sales, however, came in with a soft tone, coming in at 0.0% in June after a 0.4% expansion in May, matching expectations."

"In the US, data were mixed, with the ADP survey showing that the private sector added 179K new jobs in July, whilst according to the ISM Non-manufacturing index the sector continues expanding, printing 55.5 against the 56.0 expected."

The Markit Services PMI ended up at 51.4 beating expectations of 51.0. Despite the modest recovery, the greenback remains vulnerable and at risk of further declines. The EUR/USD pair ended the day at fresh weekly lows around 1.1140, but ever since it has been trading within an 100 pips range since the week started, the move is not relevant enough to suggest an interim top."