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Euro caught at 1.1167

Trading on the Forex market has been going relatively peacefully this Thursday. The EURUSD pair is trading in a 23-pip range with a median price of 1.1165 and the GBPUSD pair is trading within a 32-pip range with a median price of 1.2670. Given that there hasn’t been any significant data from Europe, the main driver of price changes has been the dynamics of US bonds. As of the time of writing, US 10Y bond yields have risen from 2.145% to 2.169%.

The number of factory orders has reached its highest value since October 1998. The number of factory orders in the UK for June has risen by 16% against a forecast of 7% and a previous reading of 9%. Traders ignored this report. Markets await the opening of the US session.

The US had published data on claims for unemployment benefits. In the last week, claims have risen to 241,000 (forecast: 240,000, previous reading: 237,000). The market had no reaction to this news. Fed member Jerome Powell is set to make a speech later today.

US bond yields fell before the data was released. The EURUSD is frozen at 1.1167 level, awaiting further direction. If US bond yields make it to 2.185%, we could see the currency pair move to 1.1144. If bond yields fall below 2.14%, the Euro will grow against the dollar to 1.1197. Judging by the tails on the candlesticks for the last 8 hours, it’s clear that traders can’t determine the direction of the pair.

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