EUR eyes ECB for catalyst to push to new......>

FOREX: EUR eyes ECB for catalyst to push to new lows

-A dismal set of PMI numbers from the Eurozone added further pressure to the

single currency Thursday, as the manufacturing sector (Germany in particular)

contracted at the fastest pace in over six years. This saw the EUR sit at the

bottom end of the G10 table Wednesday, just ahead of the July ECB rate decision.

Overnight EUR/USD implied volatility hit the highest levels since the November

US mid-term elections, underscoring the importance markets are placing on Draghi

Thursday.

-GBP recovered somewhat in a move that looked more reminiscent of short-covering

and position squaring, but managed to briefly edge back above $1.25 and closer

to $1.5bln in option expiries rolling off Friday at the handle. The move

followed the formal appointment of Boris Johnson as Prime Minister. In his

acceptance speech he re-affirmed his commitment to leaving the EU by Oct31.

-German IFO data, US durable goods and trade balance figures are due alongside

the ECB rate decision. US earnings season reaches a crescendo with reports due

from Amazon, Alphabet, Intel and 3M.