EUR/USD struggled to rally yesterday despite some US macro data which was not as strong as it could be, ING’s FX analyst Chris Turner notes.

EUR/USD still looks quite oversold

“Holding the euro back was probably the fallout on the European auto sector yesterday as it reacted to the prospect of Trump following through on his pre-election threats. German car maker equity prices were off 3-6% yesterday.”

“There is not a lot on the eurozone calendar today and the best chance of a EUR/USD move will be on the back of the US inflation data. EUR/USD still looks quite oversold based on its 6-7% two-month drop, which suggests any dip towards the 1.0400/0425 area today could be enough of a decline before any potential month-end rebalancing dollar sales emerge.”