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EUR/USD finds support ahead of 1.0850

The EUR/USD has been under pressure for most of the day, but of course almost all of that pressure has come from the slide in the EUR/JPY. It is certainly not the dollar, on its own merit that has pushed the Euro lower. The markets continue to fight out a direction for the US equities in the first hour of trading and so far that has delivered rotation in favour of the Dow Jones this time, but it is early days in that respect and besides the gains in the Dow are yet very limited. The JOLTS data this afternoon continued to add concerns; that the US economy is finally showing signs of slowing and that is not good news for bond market vigilantes, because US yields are continuing to fall and ultimately that will do the US currency few favours. Perhaps we need to see more tangible evidence of that as the week unfolds, with the non-manufacturing ISM report tomorrow and the monthly jobs numbers on Friday. Meantime the EUR/USD, which earlier hit a new interim high at 1.0916 has seemingly found support today, ahead of the 1.0850, pivotal level. The low seen this afternoon has been set at 1.0859. The EUR/USD is currently edging back up, right now at 1.0875 
 

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