EUR/USD bounces off lows, still weak around 1.0750

Pablo Piovano FXStreet

The single currency remains depressed during the second half of the week, taking EUR/USD to the area of 1.0750/40, or daily lows.

EUR/USD focus on German CPI

The pair is posting losses for the third session in a row so far today, extending the rejection from fresh 2017 tops just above 1.0900 the figure seen on Monday.

The persistent pick up in the demand for the greenback plus recent comments by ECB officials talking down the March statement has been weighing on sentiment and prompted spot to shed more than a cent in the last three sessions.

The buck has found support in auspicious results from the US docket along with supportive Fedspeak. In fact, Boston Fed E.Rosengren (2019 voter, hawkish) said on Wednesday he now expects the Fed to raise rates four times this year, although he stressed that such scenario still hinges on incoming data.

In the data space, German advanced inflation figures for the current month are due later seconded by EMU’s confidence/sentiment gauges. Across the pond, the third revision of Q4 US GDP is due along with the usual weekly report on the US labour market.

In addition, speeches by New York Fed W.Dudley (permanent voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, hawkish) are all expected to keep the attention on the buck.

EUR/USD levels to watch

At the moment the pair is losing 0.09% at 1.0755 facing the immediate support at 1.0738 (low Mar.29) ahead of 1.0709 (20-day sma) and finally 1.0704 (low Mar.16). On the flip side, a break above 1.0827 (high Mar.29) would target 1.0874 (200-day sma) en route to 1.0905 (high Mar.27).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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