EUR/USD drops to weekly lows near 1.1530 post-US CPI

EUR/USD recedes further and retests 1.1530 on Wednesday.
US October CPI rose 6.2% YoY, Core CPI gained 4.6% YoY.
US Initial Claims rose by 267K from a week earlier.

Pablo Piovano FXStreet

Further upside in the greenback forced EUR/USD to drop and clinch new weekly lows near 1.1530 midweek.

EUR/USD offered on US data

EUR/USD extends the daily pullback in response to the solid performance by the greenback, in turn underpinned by the rebound in US yields and higher-than-expected inflation.

On the latter, US inflation tracked by the CPI rose at an annualized 6.2% in October and 0.9% inter-month. Core consumer prices also rose above expectations at 4.6% from a year earlier and 0.6% vs. the previous month. Additional US data saw weekly Claims rising by 267K, just a tad below estimates.

The persistent move lower in spot exclusively follows the rebound in the buck amidst the recovery in US yields along the curve.

EUR/USD levels to watch

So far, spot is down 0.44% at 1.1541 and next up faces the barrier at 1.1616 (monthly high Nov.4) followed by 1.1675 (55-day SMA) and finally 1.1692 (monthly high Oct.28). On the other hand, a break below 1.1513 (2021 low Nov.5) would target 1.1495 (monthly high Mar.9 2020) en route to 1.1422 (monthly high Jun.10 2020).

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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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