EUR/USD retreats from tops, back to 1.1330 on EMU CPI
|- The pair loses the grip and returns to the 1.1330 region.
- EMU’s final CPI matched expectations in October.
- Markets’ attention remains on Brexit, US data.
After climbing to session tops beyond 1.1360, EUR/USD has now met some selling impetus and is returning to the 1.1335/30 band.
EUR/USD looks to Brexit, data
The pair is now receding from earlier tops after final inflation figures in Euroland left no room for surprises, advancing in line with the preliminary readings at 2.2% YoY, while Core prices rose at an annualized 1.1%.
All the attention in Europe remains on the Brexit negotiation following the chaotic session on Thursday, while a confidence motion against PM Theresa May is said to be underway.
Earlier in the session, ECB’s Mario Draghi said that inflation in the region still needs to show a convincing trend, while the current soft patch in the bloc should be temporary.
Moving forward, US Industrial Production and Capacity Utilization for the month of October is due along with a speech by Chicago Fed C.Evans (2019 voter, dovish).
EUR/USD levels to watch
At the moment, the pair is up 0.04% at 1.1333 facing the next hurdle at 1.1376 (21-day SMA) seconded by 1.1502 (high Nov.7) and then 1.1519 (55-day SMA). On the other hand, a break below 1.1214 (2018 low Nov.12) would target 1.1188 (61.8% Fibo retracement of the 2017-2018 up move) en route to 1.1118 (low Jun.20 2017).
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