EUR/USD within a tight range around 1.2200, US data eyed
|- The pair falls within the daily 40-pip range so far today.
- US 10-year yields around 2.99%, testing recent tops.
- German IFO signalled economy might be facing slowdown.
EUR/USD is alternating gains with losses on Tuesday, keeping the range between fresh lows near 1.2180 and session tops near 1.2220.
EUR/USD fragile, looks to data
The pair’s price action remains exclusively dependent on USD-dynamics, where the demand for the buck picked up considerable pace as of late and pushed the US Dollar Index (DXY) to fresh 3-month peaks in the 91.00 neighbourhood.
Adding to the persistent weakness around spot, yields of the key US 10-year benchmark are once again flirting with the psychological 3.0% level, or multi-year tops, as investors have shifted their attention to monetary policy.
In the data space, disappointing IFO figures in Germany capped occasional upside and kept the sentiment depressed around EUR. In the US docket, house prices tracked by the S&P/Case-Shiller Index rose at a non-seasonally-adjusted 6.8% YoY in February. Next on tap will be the CB’s Consumer Sentiment for the month of April and New Home Sales.
EUR/USD levels to watch
At the moment, the pair is up 0.07% at 1.2218 and a break above 1.2314 (21-day sma) would target 1.2321 (10-day sma) en route to 1.2414 (high Apr.17). On the other hand, immediate contention emerges at 1.2184 (low Apr.24) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1).
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