- The pair is consolidating around 1.1560 following the ECB meeting.
- The greenback keeps the firm note i the 95.00 neighbourhood.
- EMU’s final May CPI figures next of relevance in Euroland.
The selling moods around the single currency remains well and sound at the end of the week, prompting EUR/USD to stay depressed in the 1.1560/50 band ahead of the opening bell in Euroland.
EUR/USD weaker post-ECB, looks to US data
Spot is trading in new multi-day lows in the 1.1560 region following Thursday’s sharp sell off in response to the dovish tone from the ECB at its meeting.
It is worth mentioning that the European Central Bank left its rates unchanged yesterday and signalled the end of QE in December 2018. Until then, the central bank will keep buying bonds at a monthly pace of €15 billion (from €30 billion).
In addition, President Draghi stressed the Council did not discuss any policy changes, while he hinted at the likeliness that rates could be raised after the summer 2019.
The pair shed around 3 cents following the ECB event, almost fully eroding June’s recovery and now re-focusing on YTD lows in the 1.1500 neighbourhood.
Later in the session, final inflation figures for the month of May in Euroland and Italy are due along with April Trade Balance figures. Across the pond, the NY Empire State manufacturing gauge is due, seconded by advanced Consumer Sentiment for the current month and Industrial Production during May.
EUR/USD levels to watch
At the moment, the pair is losing 0.09% at 1.1558 and a breakdown of 1.1508 (2018 low May 29) would target 1.1479 (low Jul.20 2017) en route to 1.1312 (monthly low Jul.5 2017). On the flip side, the next hurdle aligns at 1.1617 (low Jun.1) seconded by 1.1705 (21-day sma) and finally 1.1720 (10-day sma).
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