EUR/USD drops to lows near 1.0660 on US CPI

Pablo Piovano FXStreet

EUR/USD accelerated the daily downside today to the area of 1.0660 following US inflation figures.

EUR/USD offered post-data

Spot met extra selling pressure after US inflation figures gauged by the CPI rose at an annualized 2.1% and 0.3% on a monthly basis during December, matching initial forecasts.

Further data saw Core consumer prices advancing 2.2% over the last twelve months and 0.2% inter-month.

The pair is now extending its correction lower from yesterday’s peaks above the 1.0700 handle ahead of upcoming speeches by Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen, all preceding the Fed’s Beige Book.

EUR/USD levels to watch

The pair is now losing 0.38% at 1.0671 and a breakdown of 1.0655 (low Jan.18) would target 1.0627 (55-day sma) en route to 1.0535 (20-day sma). On the flip side, the initial hurdle aligns at 1.0719 (high Jan.17) ahead of 1.0798 (high Dec.5) and the 1.0873 (high Dec.8).

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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