- US CPI rose 2.1% in January.
- US retail sales contracted 0.3%.
- Spot drops to lows near 1.2270.
The greenback accelerated its upside momentum on Wednesday, dragging EUR/USD to test fresh lows in the 1.2380/70 band.
EUR/USD weaker on upbeat US CPI
Spot gathered downside traction after US CPI surprised investors to the upside in January, showing headline consumer prices rising at an annualized 2.1% and 0.5% inter-month.
Prices stripping food and energy costs also came in on the strong side, up 1.8% over the last twelve months and 0.3% on a monthly basis.
On the not-so-bright side, retail sales contracted 0.3% MoM during last month vs. a forecasted 0.2% expansion, while core retail sales came in flat, also below consensus.
The pair corrected lower to the 1.2270 area, or daily lows, soon in the wake of the publications and is now looking to stabilize around 1.2300 the figure.
EUR/USD levels to watch
At the moment, the pair is losing 0.42% at 1.2300 facing the immediate support at 1.2276 (low Feb.14) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the flip side, a break above 1.2393 (high Feb.14) would target 1.2524 (high Feb.1) en route to 1.2537 (2018 high Jan.25).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.