Today Philadelphia Non-Manufacturing Index came out below the prior numbers at 23.4 vs. 33.6 in June. Moreover, the New Orders indicator fell below zero to -0.1 vs 19.7.
It’s a second tier data, and usually market completely ignores the numbers. But not this time ahead of FOMC meeting scheduled on Wednesday, and amid fears that the Fed is not ready for another rate hike before the year end.
In the environment, where the market doubts the Fed will go on tightening, and hopes the ECB will start removing the stimulus as soon as October, EURUSD has all the chances to appreciate further.
In such an environment, EURUSD may keep going up without pauses with initial target at 1.1720, followed by 1.18. And current retracement offers a perfect opportunity to enter the market.