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EUR/USD could attack 1.0900 level again with weaker than expected ISM Services PMI – Commerzbank

Economists at Commerzbank are of the opinion that if there is a significant boost in EUR/USD, it is likely to come from the dollar side.

The 1.0900 level could be tested by the succession of some weaker US data.

Today the ISM services PMI index will be published. If the services index is weaker than expected, the EUR/USD could launch another attack against the 1.0900 level.

If some weaker data occurs throughout the week, the view could increasingly prevail that this will be a rough landing that, although reasonably successful, will still leave minor damage here and there. In this case, the 1.0900 level would be tested.

However, Things could turn out differently, too: The U.S. labor market, a data heavyweight, could remain strong and, therefore, once again underpin the image of a soft landing, which would mean that the Fed and the market would not have to adjust their interest rate expectations and the Dollar would continue to show strength.

To add another ingredient to the EUR/USD mix, there is also the ECB meeting on Thursday. Our experts do not expect any big surprises that could shake the June theory, but you never know. Life is full of surprises. So maybe this week won't be as boring for EUR/USD as it seems right now.

Source: Fx Street

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