EUR/USD supported by ECB rumours, looks to US CPI
|The single currency stays bid during the European morning, with EUR/USD navigating the area above 1.1400 the figure.
EUR/USD supported by ECB rumours, looks to US CPI
The pair is extending the sideline theme around the 1.1400 handle after being rejected from fresh 14-month peaks near 1.1490 on Wednesday.
EUR/USD climbed higher on the back of dovish comments from FOMC’s permanent voter Lael Brainard earlier in the week, although the abrupt bullish attempt run out of legs in the vicinity of the key handle at 1.1500 the figure.
The greenback, in the meantime, seems to have found insufficient both testimonies by Chair J.Yellen on Wednesday and Thursday to move higher, relegating instead the US Dollar Index to menader in the mid-95.00s.
EUR at the same time stays supported by recent news citing President Draghi will announce some sort of tapering at the Jackson Hole Symposium later in the year, while recent activity in EUR futures markets keeps pointing to ocassional dips to stay shallow.
Later in the session, US CPI and retail sales for the month of June will be key in determining the buck’s direction in the near term, while they could also collaborate in the building of expectations of further tightening by the Federal Reserve in the next months.
Additional US data will see capacity utilization, industrial and manufacturing production, July’s advanced consumer sentiment and the speech by Dallas Fed R.Kaplan (voter, hawkish).
EUR/USD levels to watch
At the moment, the pair is gaining 0.12% at 1.1412 facing the immediate hurdle at 1.1435 (long-term resistance line) followed by 1.1489 (2017 high Jul.12) and finally 1.1500 (psychological handle). On the flip side, a breach of 1.1371 (low Jul.13) would target 1.1321 (21-day sma) and finally 1.1311 (low Jul.5).
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