EUR/USD losing the grips around 1.2270 ahead of PMIs
|- The pair comes down to test 1.2270 after climbing near 1.2300.
- Higher US 10-year yields collaborating with the downside.
- Later in the session, advanced April PMIs are due in Euroland.
After advancing to the boundaries of 1.2300 the figure in early trade, EUR/USD lost some upside traction and is now flirting with the area of session lows in the 1.2270/65 band.
EUR/USD looks to PMIs and US yields
Spot is losing ground for the third session in a row so far at the beginning of the week and trades at shouting distance from Friday’s lows in the mid-1.2200s, all amidst a firm buck and higher yields in the US money markets.
In fact, yields of the key US 10-year reference are extending the up move on Monday and are trading closer to the psychological 3.0% level, always against the backdrop of solid risk-on sentiment.
Later in the day, advanced April’s manufacturing and Services PMIs in the euro area should dictate the mood around the single currency. Across the pond, Markit will deliver its flash reading on Manufacturing PMI seconded by Existing Home Sales.
From the speculative community, EUR net longs climbed to the highest level since later December 2011 in the week ended on April 17 according to the latest CFTC report.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.2275 facing immediate contention at 1.2250 (low Apr.20) seconded by 1.2214 (low Apr.6) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2341 (10-day sma) would target 1.2414 (high Apr.17) en route to 1.2478 (high Mar.27).
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