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EUR/USD unable to hold New York Fed index led rebound

Since my last update, noting the sudden drop back in the dollar following the weaker than expected Empire manufacturing index, the US currency has rebounded once more. The EUR/USD had traded to below 1.0875 ahead of this data release. It managed to rebound back close to the 1.09 handle following it, as the USD/JPY dropped back to around 146.30. However, and perhaps importantly, the EUR/USD was not able to reclaim the 1.09 handle and since then it has fallen back again. In fact, it has just now hit a fresh session low at 1.0871. The failure of the EUR/USD to take proper advantage of that weak US data might be indicative of what could have happened if the data was reversed. Either way that is not a very encouraging reaction in the Euro really and now we wait and see if the US stock markets will take a blind eye too. Certainly, the US stock futures have come right back again and the Dow Jones has shed more than 100 points in the past 15-20 minutes. That might be telling too. We shall see. The EUR/USD is currently trading at 1.0877

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