EUR/USD depressed around 1.2350 on US data, Fedspeak

The pair remains offered around the mid-1.2300s, or session lows.
USD rebounded to the 89.60 region after testing 89.20.
US data surprised to the upside today; 10-year yields around 2.83%.

Pablo Piovano FXStreet

The offered tone around the shared currency has picked up pace during the European afternoon, dragging EUR/USD to test daily lows in the 1.2350 region.

EUR/USD weaker on USD-buying, US data

Spot saw its downside accelerated today following a pick up in the demand for the US Dollar, while disappointing results in the euro area docket have also collaborated with the decline.

In fact, April’s ZEW survey in Germany and Euroland came in below initial estimates for the current month. On the other hand, auspicious results from the US calendar saw Building Permits, Housing Starts, Industrial and Manufacturing Production all coming in above expectations, bolstering further the upbeat momentum around the buck and adding to yesterday’s gains in Retail Sales.

Earlier, Fed’s J.Williams said inflation should be above the Fed’s target in the next couple of years, adding that a trade war would have very negative effects. He also noted that asset valuations are high although away from bubble territory.

Looking ahead, Philadelphia Fed P.Harker (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish) area due to speak.

EUR/USD levels to watch

At the moment, the pair is losing 0.23% at 1.2351 and a breakdown of 1.2300 (low Apr.12) would target 1.2214 (low Apr.6) en route to 1.2153 (low Mar.1). On the upside, the next hurdle emerges at 1.2414 (high Apr.17) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25).

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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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