EUR/USD stays weak near 1.1040 ahead of EMU CPI

The downside pressure around the single currency remains everything but abated today, with EUR/USD drifting lower to the vicinity of 1.1040.

EUR/USD focused on EMU data

The pair is posting losses for the fifth consecutive session at the end of the week, breaking below last week’s low at 1.1051and leaving the door wide open for further decline with immediate target at 2019 low at 1.1026.

Spot remains well on the defensive so far this week on the back of the firm sentiment around the buck, which in turn stays underpinned by the rebound in US yields in response to mitigated concerns on the US-China trade front.

EUR, in the meantime, is deriving extra weakness from poor results in the domestic docket so far this week and ahead of key flash inflation figures in the broader euro area for the current month, due later in the European morning.

Across the ocean, key PCE figures will see the light today along with Personal Income/Spending and the final print of the U-Mich index.

What to look for around EUR

Spot remains on the defensive amidst the better tone in the buck and somewhat renewed optimism on the US-China trade front. Recent disappointing results from German inflation figures reinforce the case for extra monetary stimulus by the ECB ahead of today’s data for the  broader Euroland. This view is also expected to keep occasional bullish attempts well contained for the time being. On the political front, positive developments from Italy have been utterly ignored by investors so far.

EUR/USD levels to watch

At the moment, the pair is losing 0.11% at 1.1044 and faces immediate contention at 1.1026 (2019 low Aug.1) seconded by 1.0839 (monthly low May 11 2017) and finally 1.0569 (monthly low Apr.10 2017). On the upside, a breakout of 1.1125 (21-day SMA) would target 1.1186 (61.8% Fibo of the 2017-2018 up move) en route to 1.1196 (55-day SMA).