EUR/USD Analysis: market struggling with dismal news both shores of the Atlantic
|EUR/USD Current price: 1.1313
- US inflation rose by less-than-anticipated in May, Fed's rate cut mostly priced in.
- ECB's Draghi warned about the persistent risk related to global trade.
The EUR/USD pair flirted with its early June top, posting a third consecutive higher high at 1.1341, as the market rushed away from the greenback once again, following news coming from China. The PboC surprised speculative interest by setting a higher-than-anticipated reference rate for the Yuan, another measure taken on the back of the trade war between the world's two largest economies. Asian share market's edged lower, moreover as Wall Street closed in the red, while European equities trimmed early gains and are also down. ECB´s Draghi gave the opening remarks at the central bank's conference on Central, Eastern, and South-Eastern European countries, and warned about the headwinds global trade is facing in the recent years, exacerbating the dismal mood but also weighing on the shared currency, which retreated from the mentioned high.
The European macroeconomic calendar had nothing relevant to offer, while the US released first, MBA Mortgage Applications for the week ended June 7, which rose 26.8%, and just now May CPI data. According to the official report, inflation in the US rose by just 0.1% MoM in May and by 1.8% YoY, while the core annual reading came in at 2.0%, all of them slightly below the market's expectations.
The dollar initially reacted negatively to the news, although it quickly changed direction, now trading at its highest for the day against the common currency. The EUR/USD pair, however, keeps holding above the 1.1300 figure, with the upside potential fading short-term, as, in the 4 hours chart, the pair is finding some support around a bullish 20 SMA, while despite easing, technical indicators remain within positive levels. The long-term broken trend line comes in at around 1.1265, the level to break for the pair to turn bearish again.
Support levels: 1.1300 1.1265 1.1220
Resistance levels: 1.1350 1.1385 1.1420
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.