- The upbeat sentiment around the single currency stays intact.
- The greenback remains parked in the 93.60 area, or daily lows.
- Hawkish ECB-speak bolstering the pair’s upside today.
The shared currency is extending its positive performance on Wednesday, with EUR/USD navigating the area of multi-day tops in the 1.1760/70 band.
EUR/USD bid near 1.1780
The pair is prolonging the up move from last week’s 11-month lows in the 1.1500 neighbourhood, advancing for the third straight session on the back of hawkish comments from ECB officials and the persistent weakness surrounding the buck.
In fact, the greenback remains on the defensive today, hovering over the 93.60 region when tracked by the US Dollar Index (DXY) despite the US trade deficit shrunk to $46.20 billion in April, bettering initial estimates.
EUR reacted positively after ECB’s Praet, Weidmann and Knot favoured an end of the central bank’s bond-buying programme by year-end and a rate hike at some point in mid-2019.
Further US data saw Unit Labor Costs rising 2.9% QoQ during the January-March period and Non-farm Productivity expanding 0.4% inter-quarter during the same period.
EUR/USD levels to watch
At the moment, the pair is gaining 0.52% at 1.1774 facing the next up barrier at 1.1780 (high Jun.6) seconded by 1.1830 (high May 22) and finally 1.2012 (200-day sma). On the downside, a break below 1.1617 (low Jun.1) would target 1.1511 (2018 low May 29) en route to 1.1479 (low Jul.20 2017).
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