The single currency is posting marginal losses at the beginning of the trading week, taking EUR/USD to the 1.1460 region after testing the 1.1470/75 band during overnight trading.
EUR/USD focus on CPI, ECB
The pair gathered has eased some ground after testing highs near 1.1480 early in the Asian session, as market participants were adjusting to Friday’s poor results from US inflation figures and retail sales for the month of June.
In parallel, comments by Chicago Fed C.Evans (voter, dovish) fell in line with last week’s dovish appreciations from FOMC’s L.Brainard after he also advocated for a slower removal of the accommodative stance in monetary conditions in order to clinch the 2% inflation goal. Tracked by the US Dollar Index, the buck traded in fresh YTD lows in sub-95.00 levels, where it is now gravitating.
Supporting the European currency also appear increasing rumours of some sort of announcement by the ECB at its September meeting regarding its ongoing QE programme. Although some investors consider July as a potential candidate for this scenario as well, the probability is still low.
In the data space, final June CPI results in Euroland are due, while the NY Empire State index is only expected across the pond.
EUR/USD levels to watch
At the moment, the pair is losing 0.05% at 1.1463 and a breach of 1.1439 (2015-2016 support line) would target 1.1413 (10-day sma) en route to 1.1369 (low Jul.13). On the upside, the immediate hurdle lines up at 1.1475 (overnight top Jul.17) followed by 1.1489 (2017 high Jul.12) and finally 1.1500 (psychological handle).
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