The EUR/USD pair seesaw between gains and losses, stalling its intraday advance at 1.1714, despite broad dollar's weakness led the first half of the day. Risk aversion, triggered by Brexit headlines, gave a lift to the greenback ahead of the US opening, but market players are not yet willing to go long there.
The pair seems to be waiting for a strong catalyst to determine direction, but there's nothing around that could be so. China and the US tit-for-tat tariffs are already priced in and given Wall Street's latest behavior, speculative interest seems not too concerned. Brexit could be a terrible burden for the UK, but the market doesn't register the potential effects it could have on the EU. Meanwhile, the short-term picture is neutral, with the price still holding above all of its moving averages, which have recently turned flat, reflecting the lack of directional strength.
Looking ahead, SNB rate decision is a major focus today, based on recent volatility in the financial markets, SNB will likely reiterate the risks and maintain its current defensive monetary policy stance. UK retail sales is another key focus. The Pound failed to extend the strong CPI inspired rally, due to Brexit uncertainties. Now it’s time to lend a hand from retail sales. Later in the day, US will release Philly Fed survey, jobless claims, leading indicator and existing home sales. Canada will release ADP payrolls.
