- The pair trades on the defensive, rebounds from 1.1740.
- Optimism over the Trump-Kim meeting lends support to USD.
- German ZEW Survey, US CPI figures coming up next.
The better tone around the greenback is putting EUR/USD under some pressure, relegating it to the area of daily lows near 1.1740, where it is now trying to rebound.
EUR/USD looks to data, Trump, FOMC
The pair is prolonging the choppy trade during the first half of the week amidst renewed optimism surrounding the greenback as the long-waited Trump-Kim meeting is underway in Singapore.
Spot managed to regain the 1.1800 handle and above in past sessions, although the lack of follow through and the presence of sellers undermined the continuation of the rally and sparked the subsequent correction.
Looking ahead, the pair is expected to remain sidelined in light of the FOMC meeting tomorrow and the ECB gathering on Thursday. Consensus sees the Fed hiking rates by 25 bp although the bulk of the attention should be on the fresh ‘dots-plot’ and whether the Committee could raise rates 4 times this year.
In the data space, the German/EMU ZEW Survey is due next in Euroland, while inflation figures tracked by the CPI for the month of May will be in the limelight later across the pond.
EUR/USD levels to watch
At the moment, the pair is losing 0.18% at 1.1763 facing initial contention at 1.1726 (low Jun.8) seconded by 1.1731 (10-day sma) and finally 1.1617 (low Jun.1). On the flip side, a breakout of 1.1840 (high Jun.7) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14).
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