- The pair fades the uptick to daily highs beyond 1.1350.
- The greenback finds support in the mid-96.00s so far.
- German IFO survey missed expectations in February.
After briefly testing the 1.1350/60 band earlier in the session, EUR/USD came under some selling pressure in the wake of the publication of key German data.
EUR/USD offered on poor data
Spot erases initial gains after the key German IFO survey came in below expectations in all of its components for the month of February.
In fact, Business Climate dropped to 98.5, Current Assessment ticked lower to 103.4 and Business Expectations receded to 93.8, all of them missing previous estimates.
In the meantime, markets remains vigilant on any developments from the US-Sino trade negotiations, which appear as the main driver for the near term mood in the global markets.
Looking ahead, final EMU inflation figures are expected to come in line with preliminary readings.
Across the pond, Fed speaker should grab all the attention with the buck in centre stage.
What to look for around EUR
The shared currency continues to look to developments from the US-China trade talks for near term direction as well as any headlines from the effervescence on the US-EU trade front. Disappointing advanced prints from manufacturing PMIs in Germany and the euro bloc plus a ‘reality check’ from the ECB minutes appear to have exacerbated concerns over the deterioration in the bloc’s fundamentals and casted further shadows over the probability of any action on rates from the ECB this year.
EUR/USD levels to watch
At the moment, the pair is gaining 0.05% at 1.1340 facing the next up barrier at 1.1371 (high Feb.20) seconded by 1.1382 (55-day SMA) and then 1.1392 (100-day SMA). On the other hand, a break below 1.1310 (10-day SMA) would aim for 1.1234 (2019 low Feb.15) and finally 1.1215 (2018 low Nov.12).
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