EUR/USD moves to daily highs near 1.1470 on upbeat CPI

  • Spot clinches fresh tops on flash EMU CPI.
  • Advanced Core CPI in Euroland seen higher in January.
  • US Non-farm Payrolls, ISM Manufacturing coming up next.

The sentiment around the shared currency has reverted the initial pessimism and is now lifting EUR/USD to new session peaks near 1.1470.

EUR/USD bid after positive CPI

The pair is seeing its upside renovated today after advanced inflation figures in the euro area surprised to the upside for the current month. In fact, tracked by the headline CPI, prices are seen rising 1.4% from a year earlier and 1.1% when comes to prices stripping food and energy costs.

The now better tone in the risk-associated space is also hurting the buck and dragging the US Dollar Index to fresh lows in the mid-95.00s.

Moving forward, US Non-farm Payrolls and the ISM Manufacturing would be in centre stage later in the NA session.

What to look for around EUR/USD

Recent Q4 GDP figures in Euroland coupled with today’s inflation figures sparked some optimism among traders, keeping up hopes that the ongoing slowdown in the region could be temporary. Politics in Euroland will also be a factor to have in mind in the next months, with EU parliamentary elections coming up in May and investors vigilant on the social scenario in France and populist developments in Italy. On the USD-side, the now neutral stance from the Fed carries the potential to limit occasional bullish attempts, while markets keep looking for clues regarding the timing of the end of the balance sheet run-off.

EUR/USD levels to watch

At the moment, the pair is gaining 0.19% at 1.1468 facing the next hurdle at 1.1514 (high Jan.31) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9). On the other hand, a break below 1.1434 (low Feb.1) would target 1.1422 (21-day SMA) en route to 1.1390 (55-day SMA).

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.

Feed news

Editors’ Picks

EUR/USD: In stasis near key descending trendline hurdle, focus on Fed

EUR/USD is consolidating near the resistance of the trendline connecting Jan. 31 and Feb. 28 highs pre-Fed and could rise well above 1.14 if the central bank sounds more dovish-than-expected. 

EUR/USD News

GBP/USD: Pressure builds around 1.3250, UK CPI, FOMC in spotlight

The GBP/USD pair trades near the intra-day low of 1.3250 ahead of London open on Wednesday. The pair recently weakened as the US Dollar (USD) registered gains across the board.

GBP/USD News

USD/JPY: Recovery stalls near 111.70 amid pre-Fed caution trading

The USD/JPY pair eased-off session highs near 111.70 levels and now trades near 111.55 region, as the bulls take a breather amid a typical pre-Fed caution trading and the latest North Korean reports while the US-China trade worries continue to remain a drag. 

USD/JPY News

Crypto News

majors

Editors’ Picks

EUR/USD: In stasis near key descending trendline hurdle, focus on Fed

EUR/USD is consolidating near the resistance of the trendline connecting Jan. 31 and Feb. 28 highs pre-Fed and could rise well above 1.14 if the central bank sounds more dovish-than-expected. 

EUR/USD News

GBP/USD: Pressure builds around 1.3250, UK CPI, FOMC in spotlight

The GBP/USD pair trades near the intra-day low of 1.3250 ahead of London open on Wednesday. The pair recently weakened as the US Dollar (USD) registered gains across the board.

GBP/USD News

USD/JPY: Recovery stalls near 111.70 amid pre-Fed caution trading

The USD/JPY pair eased-off session highs near 111.70 levels and now trades near 111.55 region, as the bulls take a breather amid a typical pre-Fed caution trading and the latest North Korean reports while the US-China trade worries continue to remain a drag. 

USD/JPY News

UK inflation preview: Why GBP/USD risks are skewed to the upside

The headline Consumer Price Index stood at an increase of 1.8% in January, and a repeat of the same number is on the cards for February. Core CPI was at 1.9% and also here, a repeat is on the cards.

Read full report

Federal Reserve Preview: Dots before our eyes

Fed Funds 2.25%-2.5% target range not in contention at this FOMC. Market focus will be on the Projection Materials. 

Read more

signatures


  •  
  •  
  •  
  •  
  •