- EUR/USD comes under pressure and approaches 1.1200.
- EMU flash CPI came at 0.3% YoY and 0.3% MoM.
- Feds’ Jerome Powell will testify later in the NA session.
The single currency has resumed the downside so far on Tuesday and is now forcing EUR/USD to challenge the key support at 1.12 the figure.
EUR/USD paid no attention to data
EUR/USD is fading Monday’s advance to the vicinity of the 1.1300 level, re-shifting its focus to the lower end of the range near the 1.1200 mark.
In the meantime, there is not much going on other than the gradual re-opening of economies in Europe following the coronavirus lockdown. Special attention, however, stays on July 1st, as many (if not all of) EU members will lift the air-travel ban, resuming flights within the region and from/to other countries.
In the calendar, inflation figures in the broader euro zone tracked by the headline CPI are expected to rise at an annualized 0.3% in June, while CPI excluding food and energy costs is seen gaining 0.8% over the last twelve months.
Across the pond, house prices measured by the S&P/Case-Shiller Index are due seconded by the Chicago PMI, the Consumer Confidence and the testimony by Chief J.Powell. In addition, FOMC’s Williams, Brainard, Kashkari and Bostic are all due to speak later on Tuesday.
What to look for around EUR
EUR/USD appears to have met some important resistance in the 1.1350 region in recent days. Investors continue to gauge the gradual and relentless return to some sort of economic normality in Europe against the possibility of a second wave of contagion (as per new coronavirus outbreaks around the world). The constructive view in the euro, however, remains well sustained by the improvement of some fundamentals in the region, in turn propped up by persistent (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is losing 0.33% at 1.1203 and faces immediate contention at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1033 (200-day SMA). On the upside, a breakout of 1.1287 (weekly high Jun.29) would target 1.1348 (weekly high Jun.23) en route to 1.1422 (monthly high Jun.10).
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.