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EUR/USD treading water around 1.1560/70

  • The pair stays parked around 1.1560/70 on Wednesday.
  • The greenback keeps the firm note above the 95.00 mark.
  • Investors’ attention is focused on the ECB Forum in Sintra.

The better tone around the greenback keeps EUR/USD on the back foot in the middle of the week around the 1.1560/70 band.

EUR/USD looks to Sintra, risk trends

Spot remains on the defensive for another session amidst the persistent sentiment around the greenback and a mild bias towards the risk off mood in light of the US-China trade spat.

Absent relevant releases in Euroland and the US, market participants will look to any headlines from the ECB Forum in Sintra (Portugal), where President Draghis will share a discussion panel later today with Chief J.Powell and BoJ’s H.KJuroda.

In the meantime, the pair looks vulnerable to the yields spread between the US and German money markets, which continue to support the buck, particularly after the recent stance from the ECB and earlier comments from ECB officials, noting that a rate hike in Euroland would not come before September 2019.

In this regard it is worth recalling that President Draghi stressed on Tuesday that the ECB remain prudent and patient when comes to decide the timing of the start of the hiking cycle.

EUR/USD levels to watch

At the moment, the pair is losing 0.16% at 1.1570 and a breakdown of 1.1543 (low Jun.15) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1644 (high Jun.19) seconded by 1.1681 (21-day sma) and finally 1.1685 (10-day sma).

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