A sideways bias for EUR/USD since Friday's initial reaction to the US Payroll revision. The EUR is currently caught between gains vs the Yen on the N.Korea news and losses vs the Dollar on Friday"s data. A 1.2585 to 1.2608 range indicated through Asian and into the European open. Safe haven flows have had only a limited impact on EUR/CHF and EUR/GBP continues to eat away at Friday"s sharp 0.6770 to 0.6713 decline.
With the US markets observing Columbus Day there is a risk that tight ranges will stifle EUR/USD while the crosses carve out marginally more direction. On the data front the earlier release of German August trade numbers failed to move price despite a healthy widening of the surplus to EUR 12.1 bln from expectations of a contraction to EUR 11.75 bln. Eurozone October Sentix index, no forecast, is due at 08:30 GMT and German August industrial production will also hit the screens at 08:30 GMT. The market is looking for production to rise 0.2% on the month. EUR/USD remains bear biased but expect to see bids emerge at Friday's 1.2575 low. A major squeeze is only likely above 1.2640.
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