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EUR/USD decline stalls around 1.1110, Greece still weighs

After bottoming out in the 1.1110 region, EUR/USD seems to have met some buyers and is now returning to the 1.1130/40 band.

EUR/USD focus on Greece

EUR came under further downside pressure during the first half of the week following heightened concerns over the possibility that Greece could default on its debt.

Adding to the decline, comments from former Italian PM M.Renzi opened the door for potential earlier elections in Italy, likely to be held in September (same as German elections).

In the same line, ECB President Mario Draghi stressed on Monday that the region still needs a considerable amount of monetary stimulus, while inflation pressures still remain subdued, all increasing the offered bias in EUR.

Data wise in the region, Spanish advanced CPI for the current month sees consumer prices advancing 2.0% YoY, while several confidence/sentiment gauges are expected later.

Across the pond, April’s inflation figures tracked by the PCE and personal income/spending are due followed by May’s consumer confidence gauged by the Conference Board and the speech by FOMC’s L.Brainard (permanent voter, centrist).

EUR/USD levels to watch

At the moment, the pair is losing 0.28% at 1.1135 facing the immediate support at 1.1110 (low May 30) followed by 1.1073 (76.4% Fibo of 1.1300-1.0339) and finally 1.1059 (20-day sma). On the flip side, a breakout of 1.1192 (high May 29) would target 1.1235 (high May 26) en route to 1.1250 (high May 25).

 

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