EUR/USD fragile near 1.1130 on ECB minutes
|- EUR/USD remains depressed in the 1.1130/25 band.
- German IFO survey missed expectations in May.
- ECB accounts said recovery in H2 lost traction.
There is no change on the broader offered mood around the European currency, as EUR/USD remains depressed in the area of fresh lows near 1.1130.
EUR/USD stays offered on data, ECB
Spot remains on the back foot for yet another session in Thursday, facing extra downside pressure in the wake of poor prints from the German IFO survey and preliminary readings for manufacturing PMIs for the current month.
EUR stayed apathetic on the publication of the ECB accounts of the last meeting. In them, the central bank noted that expectations of the recovery in the economic activity in the region in H2 have now subsided somewhat. In addition, the ECB said TLTRO terms will be released at any of the upcoming meetings.
Event wise in Euroland, all the attention in the next days will be on the EU parliamentary elections, which start today and will see final results on Sunday. According to latest polls, Eurosceptic parties could gain more than 35% of the seats.
Across the ocean, Initial Claims, New Home Sales and speeches by FOMC’s Daly, Bostic, Kaplan and Barkin should keep traders entertained later in the NA session.
What to look for around EUR
Recent data releases in Euroland and Germany have poured cold water over the idea that some healing process could be under way in the region, re-shifting the focus to the ongoing slowdown and its probable duration and extension. In the meantime, the current ‘neutral/dovish’ stance from the ECB is expected to persist for the remainder of the year and probable through H1 2020. The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with the now stalled US-China negotiations and potential US tariffs on EU products. On the political front, Italy has re-emerged as a source of uncertainty and volatility, while investors’ focus has now shifted to the EU parliamentary elections due later this week.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.1137 and faces the next support at 1.1129 (low May 23) seconded by 1.1109 (2019 low Apr.26) and finally 1.0839 (monthly low May 2017). On the flip side, a break above 1.1183 (21-day SMA) would target 1.1217 (23.6% Fibo of the 2019 drop) en route to 1.1236 (55-day SMA).
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.