- EUR/USD recovers ground lost and approaches 1.1300.
- German final May CPI came in at 0.2% MoM and 1.4% YoY.
- US-China trade dispute remains in centre stage.
The European currency is recovering the composure in the second half of the week and is helping EUR/USD to regain the vicinity of the key 1.1300 the figure.
EUR/USD focused on trade, data
The pair failed to extend the up move further north of the 1.1330 region on Wednesday, sparking a correction lower to the 1.1290/85 band, where some decent support appears to have emerged.
In the meantime, the greenback managed to regain some buying interest and clinch the 97.00 mark, although the bullish attempt lacked of follow through amidst easing effervescence in the US-China trade front following Trump’s positive comments.
On another direction, spot keeps looking to the US-GE yield spread differentials, which are now shrinking to 235 pts after climbing to the 240 pts area earlier in the week.
In the docket, German final inflation figures for the month of May matched the preliminary readings, with the CPI rising 0.2% inter-month and 1.4% over the last twelve months. Across the pond, Import/Export Prices are next on the docket along with usual Initial Claims.
What to look for around EUR
The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with developments from the trade front including the US, China, the EU and Mexico. On the political front, Italian politics is expected to remain a source of uncertainty and volatility, with the centre of the debate on the country’s opposition to EU fiscal rules. EUR, however, is expected to remain under scrutiny amidst the renewed dovish stance from the ECB and the ongoing slowdown in the region.
EUR/USD levels to watch
At the moment, the pair is gaining 0.11% at 1.1299 and a breakout of 1.1347 (high Jun.7) would target 1.1362 (200-day SMA) en route to 1.1448 (monthly high Mar.20). On the other hand, the next support lines up at 1.1271 (100-day SMA) followed by 1.1218 (55-day SMA) and finally 1.1200 (low Jun.6).
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.