- EUR/USD eases a tad from tops near 1.1320.
- US Philly Fed index dropped to 0.3 in June.
- EMU Consumer Confidence coming up next in the docket.
The buying bias remains well and sound around the European currency, with EUR/USD hovering over the 1.1300 neighbourhood following US data releases.
EUR/USD looks to 1.1350, monthly highs
The march north in the pair stays unabated so far today, fuelled by increasing selling pressure around the buck in the wake of the dovish shift from the Federal Reserve at the FOMC meeting on Wednesday.
Supporting USD-selling, the key Philly Fed manufacturing gauge dropped to 0.3 for the current month, also coming in short of expectations. Further data across the pond saw the Current Account deficit shrinking to $130.0 billion during Q1, although missing previous estimates.
However, the continuation of the up move in the pair is expected to be short-lived, as the ECB too is now looking to the possibility of lower rates and/or restarting the QE programme if the outlook on the region worsens and inflation fails to move closer to the bank’s target.
Later in the day, the European Commission will publish its preliminary measure of the Consumer Confidence in the region for the current month.
What to look for around EUR
The renewed dovish stance from the ECB and USD-dynamics appear to be dictating the price action around the European currency for the time being, relegating to a secondary role the broad risk-appetite trends and trade tensions. Furthermore, the slowdown in the region looks unremitting and reinforces at the same time the current attitude of the central bank. On the political front, Italian politics is expected to remain a source of uncertainty and volatility for EUR, with the centre of the debate gyrating around the country’s opposition to EU fiscal rules as well as the challenging tone from LN’s M.Salvini.
EUR/USD levels to watch
At the moment, the pair is advancing 0.64% at 1.1297 and a breakout of 1.1347 (high Jun.7) would target 1.1353 (200-day SMA) en route to 1.1448 (monthly high Mar.20). On the downside, immediate contention is located at 1.1181 (low Jun.18) seconded by 1.1176 (monthly low Mar.7) and finally 1.1115 (low May 30).
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