EUR/USD: Upside remains capped by 1.1250 amid weak Eurozone data
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- Weaker-than-expected Eurozone CPIs to keep a check on the EUR's recovery, despite risk-on.
- Focus shifts to US retail sales and ISM manufacturing for a sustained move higher.
The upside attempts in the EUR/USD pair fizzled once again at the midpoint of the 1.12 handle, as the sentiment around the common currency was dented further following the release of softer Eurozone flash headline and core CPI readings for the month of March.
Eurozone flash CPI arrives at 1.4% y/y in March, misses estimates
Despite a slew of disappointing Euro area final manufacturing PMI and CPI reports, the tone around the major remains buoyant, mainly driven by broad-based US dollar weakness, as markets dump the safe-haven greenback amid a risk-on rally in the global equities and oil prices. The renewed optimism amid US-China trade progress and the expansion in the Chinese manufacturing sector activity bolstered the overall risk sentiment.
That said, the rally in the US Treasury yields across the curve could be also responsible for the limited gains in the EUR/USD pair, as attention now turns towards a fresh batch of US macro releases, including the key retail sales and ISM manufacturing PMI, for fresh trading impetus.
EUR/USD Technical Levels
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