FX update: Euro range bound in quiet trade despite EZ PMI data

EUR/USD remained range bound during the European morning, with prices holding within close proximity to the 1.4000 level.

The market generally ignored eurozone data releases, which included an upward revision to final services PMI to 44.7 in June and a fall in eurozone June retail sales by 0.4%.

Options interest influenced throughout and looks likely to dominate movement in the European afternoon, with the US closed for its Independence Day holiday. EUR 1 bln worth of strikes are rolling off at 1.4000, with a US name short of the strikes and noted as a persistent seller on upticks, while on the downside Asian accounts have been steady buyers in to the 1.3975-80 area.

Asian reserve managers were noted as modest buyers from the 1.3938 lows and most European accounts expect this interest to come in should the euro retest the lower end of its recent range, which was 1.3927 on Thursday.

Offers are noted from 1.4060-80 ahead of buy stops above 1.4100, but these look well protected given the lack of impetus in today's session so far.