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

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).