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Forex pairs in this Article » EUR/USD (London) - Teams at BBH, in research, said that the EUR/USD extended yesterday's move above $1.33 in early Europe, but ran out of steam abruptly. An important target for many chartists is $1.3340.

They mentioned that a break now of yesterday's lows near $1.3230 would call into question the euro's recent uptrend. They share two observations about the euro area industrial production report. Their first is sentiment and surveys appear to have been weaker than the actual figures. They find this distinction often helpful, but is often obscured in data-surprise models.

Second, they say at his press conference earlier this month, Draghi implied that it would take a worsening of the data for the ECB to deliver another rate cut. The recent data, including the rise in industrial output, suggest no rate cut in Q3 in their opinion.
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