EUR/USD trims gains, back around 1.2400

  • The pair retreats from earlier daily highs in the 1.2410/15 band.
  • USD somewhat offered below the 90.00 handle, looks to data.
  • ECB-speak, US Retail Sales next on tap, focus also on tariffs.

The single currency is trimming part of its earlier gains vs. the greenback and is now prompting EUR/USD to recede towards the 1.2400 milestone and below ahead of the opening bell in Euroland.

EUR/USD attention to data, ECB

The pair is advancing for the third session in a row so far this week, although gains further north of the ‘double tops’ in the 1.2445/50 band appears elusive for the time being.

Spot gained further traction today amidst another round of selling pressure hitting the buck, particularly after President Trump fired Secretary of State Tillerson on Tuesday. In addition, February’s inflation figures in the US economy came in as expected, leaving no room for surprises and thus removing some potential for extra gains in USD.

Looking ahead, EMU’s Industrial Production for the month of January plus the EuroGroup meeting should grab attention during the European trading hours. Across the pond, US Retail Sales and the weekly report on US crude oil supplies will be worth following.

In addition, EUR should remain in the limelight ahead of speeches by ECB’s Draghi, Coeure, Praet and Constancio. On the USD-side, headlines of potential tariffs on China should keep the volatility intact around the buck.

EUR/USD levels to watch

At the moment, the pair is gaining 0.02% at 1.2394 and a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18). On the flip side, immediate contention emerges at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).

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