EUR: Seasonal factors weighing? – ING

September is typically a poor month for both EUR/USD and the trade-weighted Euro index, ING’s FX strategist Chris Turner notes.  

EUR to consolidate just under 1.1100

“We're not sure what's behind that, but on the EUR/USD side it may relate to the 15 September US corporate tax deadline for those companies with a fiscal year ending 30 June. Unless we get a very sharp rise in the US unemployment rate tomorrow, it feels like very hard work for EUR/USD to break from the 18-month 1.05-1.11 trading range this month.”

“In Europe today, we've seen some surprisingly strong July factory orders data in Germany, with the prior month revised higher too.” 

“EUR/USD has just about held support at 1.1040 this week and will probably consolidate just under 1.1100 – unless today's US data surprises on the downside.”