- The pair moves higher and retakes the 1.1300 handle.
- Chinese positive docket helps with the upside.
- EMU final CPI figures next of relevance in the calendar.
The renewed selling bias around the greenback is pushing EUR/USD back above the 1.1300 barrier early in the European session.
EUR/USD bid on risk appetite, looks to data
Auspicious Chinese readings from the industrial sector and GDP boosted the sentiment in the risk-associated complex and alleviated concerns over the slowdown in the economy.
That said, spot has managed to bounce of yesterday’s lows in the 1.1280 region pari passu with the re-emergence of the selling mood surrounding the buck, which forced the US Dollar Index to once again visit the sub-97.00 region.
Data wise in Euroland, final CPI figures for the month of March will be the salient event later today, while Trade Balance results and the Beige Book will be in centre stage later in the NA session.
What to look for around EUR
Positive sentiment in the risk-associated complex gave fresh oxygen to the shared currency in recent sessions and remains the exclusive driver of the price action for the time being. Recent ECB headlines noted the Council appears unconvinced of a rebound in the second half of the year, feeding into the already ongoing concerns that the slowdown in the region could last longer that expected and the central bank is therefore likely to remain ‘neutral/dovish’ for the foreseeable future (say until mid-2020?). On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections and the swelling presence of the populist option among voters.
EUR/USD levels to watch
At the moment, the pair is gaining 0.22% at 1.1305 and a breakout of 1.1337 (200-week SMA) would target 1.1344 (100-day SMA) en route to 1.1419 (high Feb.14). On the flip side, initial contention emerges at 1.1269 (21-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).
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