EUR/USD keeps the bid tone around 1.1300, focus on Brexit vote
|- The pair moves higher and surpass the key 1.1300 handle.
- US Producer Prices came in on the soft side in February.
- UK House of Commons will vote on ‘no deal’ later in the day.
Still happy days for the shared currency, as EUR/USD has managed to retake the critical 1.1300 the figure and beyond, fully retracing the ECB-induced pullback last Thursday.
EUR/USD bid post-US data, looks to Brexit
Spot is up for the fourth consecutive session today, increasing the distance from last week’s 2019 lows in the 1.1180 region recorded in the wake of the ECB event.
The favourable environment for the riskier assets keeps sustaining the up move in sport, which has retaken the key 10-day SMA in the 1.1290 zone and advanced further north of the 1.1300 handle.
In the data universe, Industrial Production in the euro bloc surprised markets to the upside, rebounding more than expected during the first half of the year. In the US, headline Producer Prices rose 0.1% inter-month in February and 1.9% over the last twelve months, while Core prices gained 0.1% MoM and 2.5% YoY. Additional data saw Durable Goods Orders expanding at a monthly 0.4%, beating forecasts.
What to look for around EUR
Market participants appear to have already adjusted to the recent and renewed dovish stance from the ECB, focusing instead on the broad risk-appetite trends as the main driver of the price action in the near term. In the longer run, the performance of the economy in the region should remain in centre stage along with prospects of re-assessment of the ECB’s monetary policy. In this regard, it is worth mentioning that investors keep pricing in the first rate hike by the central bank at some point in H2 2019. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among voters.
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.1291 and a break above 1.1304 (high Mar.13) would target 1.1311 (21-day SMA) en route to 1.1369 (55-day SMA). On the downside, the next support aligns at 1.1176 (2019 low Mar.7) followed by 1.1118 (monthly low Jun.20 2017) and finally 1.1021 (high May 8 2017).
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.