Factory orders data released today was much lower than expected at negative 0.4%, true the forecast was for a low number but close to zero. This number sent a big message to the market and that is it is getting less and less likely to see a rate hike anytime soon.
EURUSD went from 1.0978 pre figures to a close for the London trading session at 1.1170
That is quite a big rally, only on the back of a fairly small data. This was not Non-farm payroll, which is out this Friday, I have the feeling bad data on those figures will send the Euro back to 1.14s against the dollar. Also this price jump takes the action out of a small channel that had formed over the past 7 trading days with price action confined mostly between the 50% and 61.8% Fibo lines.