EUR/USD climbs to daily highs above 1.1300

  • EUR/USD reclaims the 1.1300 mark and above on Friday.
  • The dollar gives away daily gains following the US opening.
  • US Producer Prices contracted 0.2% MoM in June.

The single currency left behind the negative start of the session and is now lifting EUR/USD back above 1.1300 the figure to print fresh daily highs.

EUR/USD regains ground on USD-weakness

EUR/USD has regained buying interest and it has returned to the area above the 1.1300 mark on Friday.

In fact, the greenback is now facing increasing downside pressure and tests daily lows when tracked by the US Dollar Index (DXY), all amidst a better mood in the risk-associated space. However, and despite the bounce in the pair, concerns over the relentless advance of the coronavirus pandemic carry the potential to undermine the recent upside momentum, prompting investors to remain highly cautious.

In the docket, nothing relevant in the euro area on Friday, while US Producer Prices contracted at a monthly 0.2% in June and 0.8% over the last twelve months. Core prices dropped 0.3% inter-month and rose 0.1% from a year earlier.

What to look for around EUR

Sellers in EUR/USD turned up after the pair hit fresh multi-week peaks around 1.1370 on Thursday, always supported by the solid improvement in the risk-associated universe. The constructive view in the euro, in the meantime, stays well and sound and supported by the improvement of key fundamentals in the region amidst the current (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.

EUR/USD levels to watch

At the moment, the pair is gaining 0.24% at 1.1311 and a breakout of 1.1370 (monthly high Jul.9) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the flip side, the next support lines up at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1046 (200-day SMA).

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