EUR/USD returns to 1.1340 post-US CPI

EUR/USD rebounds from lows after US CPI.
The pair meets resistance in the 1.1340/45 band.
US CPI surprised to the downside in May.

Pablo Piovano FXStreet

After a brief test of lows in the 1.1310 region, EUR/USD suddenly rebounded to the area of daily highs in the 1.1340/45 band.

EUR/USD bounces off lows post-US data

The pair has quickly faded the knee-jerk to the 1.1315/10 band after US inflation figures tracked by the CPI came in below expectations during May.

In fact, headline consumer prices rose at a monthly 0.1% and 1.8% from a year earlier. Additionally, prices stripping food and energy costs gained 0.1% inter-month and rose at an annualized 2.0% (from 2.1%).

Earlier in the session, the pair met some downside pressure following the rebound in the US-GE yields differentials from daily lows around the 235 pts.

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 0.07% at 1.1333 and a breakout of 1.1347 (high Jun.7) would target 1.1364 (200-day SMA) en route to 1.1448 (monthly high Mar.20). On the other hand, the next support lines up at 1.1272 (100-day SMA) followed by 1.1218 (55-day SMA) and finally 1.1200 (low Jun.6).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.