EUR/USD runs out of steam near 1.1780, dollar remains bid
|- EUR/USD failed to extend the move beyond 1.1780.
- Higher yields, data sustains the dollar performance.
- Advanced US Q2 GDP came in above expectations.
It seems the positive streak in the single currency came to a halt, as EUR/USD now trades with moderate losses after being rejected from the 1.1780 region earlier in the session.
EUR/USD now looks to Powell
After four consecutive daily advances, EUR/USD now loses the grip and returns to the mid-1.1700s, always on the back of the recovery in the greenback.
In fact, better-than-expected Q2 GDP figures lent extra oxygen to the dollar, while the march higher in yields of the US 10-year note also collaborate with the improved mood surrounding the buck.
On the ECB front, the Accounts from the latest meeting noted that the economic recovery in the bloc remains on track, although members see upside risks when comes to inflation. In addition, there was practically no debate whether to continue the net asset purchases under the PEPP. The pace of purchases, however, could be re-assessed at the September meeting.
Earlier on Thursday, the Business Climate in Germany ticked lower in September, adding to the renewed softness observed in preliminary PMIs and the German IFO in previous sessions.
EUR/USD levels to watch
So far, spot is losing 0.16% at 1.1752 and a breakdown of 1.1663 (2021 low Aug.20) would target 1.1612 (monthly low Oct.20 2020) en route to 1.1602 (monthly low Nov.4 2020). On the upside, the next resistance is located at 1.1804 (weekly high Aug.13) followed by 1.1814 (50-day SMA) and finally 1.1908 (monthly high Jul.30).
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