- The pair clinches new daily highs in the boundaries of 1.1780.
- US Producer Prices rose more than expected 0.5% MoM in May.
- US FOMC meeting, updated ‘dots-plot’ next of relevance.
EUR/USD is now gathering extra steam and is testing the upper end of the recent range in the vicinity of the 1.1780 region.
EUR/USD bid despite US data
Spot is picking up extra pace while fresh selling pressure is hitting the buck despite US Producer Prices surprised to the upside during last month.
In fact, Producer Prices rose at a monthly 0.5% and 3.1% over the last twelve months. In addition, Core prices gained 0.3% inter-month and 2.4% on an annualized basis.
Looking ahead, market participants will closely follow the Committee’s view on the prospects of further tightening (dots plot) by the Federal Reserve in the next months at today’s FOMC meeting, while a 25 bp rate hike appears already priced in.
EUR/USD levels to watch
At the moment, the pair is up 0.27% at 1.1777 and a breakout of 1.1840 (high Jun.7) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14). On the flip side, initial contention emerges at 1.1726 (low Jun.8) seconded by 1.1718 (low Dec.12 2017) and finally 1.1617 (low Jun.1).
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.