“¢ Shared currency weighed down by today’s softer than expected Euro-zone CPI figures.
“¢ A modest pickup in the USD demand exerts some additional downward pressure.
The EUR/USD pair met with some fresh supply ahead of the 1.1700 handle and turned lower for the second consecutive session.
The pair failed to capitalize on its early uptick and was being capped by today’s slightly softer than expected preliminary Euro-zone consumer inflation figures, coming in to show 2.0% y/y rise as against 2.1% forecasted. Adding to the disappointment from the headline print, core prices also fell short of consensus estimates and advanced 1.0% over the last 12-months versus 1.1% rise anticipated.
This against the backdrop of a modest US Dollar uptick exerted some additional downward pressure and dragged the pair back below mid-1.1600s. Renewed US-China trade tensions triggered a fresh wave of global risk-aversion trade and drove some safe-haven flows towards the greenback.
Moving ahead, traders now look forward to the US economic docket, highlighting the release of Chicago PMI and revised UoM consumer sentiment index in order to grab some short-term trading opportunities on the last trading day of the week.
Technical levels to watch
A follow-through weakness below overnight swing low, around 1.1640 level, is likely to accelerate the downfall back towards retesting the 1.1600 round figure mark. On the flip side, the 1.1690-1.1700 region might continue to act as an immediate resistance, above which the pair is likely to aim towards challenging the 1.1740 supply zone, coinciding with 100-day SMA.
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