EUR/USD under pressure near 1.10 ahead of German data
|- EUR/USD keeps business near the 1.10 mark.
- The FOMC left rates on hold on Wednesday.
- German jobs, advanced CPI next of relevance.
The single currency remains under scrutiny in the second half of the week, always with EUR/USD hovering around the key 1.10 mark.
EUR/USD now looks to German docket
The pair keeps navigating the lower end of the current range close to the 1.10 neighbourhood on Thursday, always amidst USD-strength and the recent bounce off YTD lows in the 1.0990 region (Wednesday).
In the meantime, growth fears following the Wuhan coronavirus appear somewhat mitigated and seem supporting the improved mood in the risk-associated complex, at the same time sustaining the bounce off recent lows.
Later in the day, the focus of attention is expected to be on the German labour market report ahead of advanced inflation figures for the month of January. Across the pond, flash GDP figures for the October-December period will be in the spotlight seconded by weekly Initial Claims.
What to look for around EUR
The pair remains well under pressure and continues to put the 1.1000 support to the test. Dynamics around the buck are expected to remain the exclusive driver of the pair’s price action for the time being along with alternating risk appetite trends in response to developments from the Wuhan coronavirus. On another scenario, the ECB is expected to finish its strategic review (announced last Thursday) by year-end, leaving speculations of any change of the monetary policy before that time pretty flat. Further out, some better-than-expected results in the euro region as of late seem to have lent support to the idea that the bloc could have left the worst behind, although that view looks premature, to say the least.
EUR/USD levels to watch
At the moment, the pair is advancing 0.04% at 1.1014 and faces the next barrier at 1.1067 (100-day SMA) seconded by 1.1089 (55-day SMA) and finally 1.1126 (200-day SMA). On the other hand, a breakdown of 1.0992 (weekly/2020 low Jan.29) would target 1.0981 (monthly low Nov.29 2019) en route to 1.0925 (low Sep.3 2019).
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