- The pair rebounds from 1.1380 and retakes the 1.1400 handle.
- The greenback recedes from tops and tests 96.25/20.
- German IFO, ECB meeting next of relevance later in Euroland.
The single currency has started the second half of the week on a better mood and is now managing to lift EUR/USD to session tops in the vicinity of 1.1420 ahead of the opening bell in Euroland.
EUR/USD looks to Italy, ECB, data
After dropping to fresh 2-month lows around 1.1380 on Wednesday, spot managed to regain some attraction and rebound to 1.1400 and beyond amidst some selling pressure hitting the buck.
Investors’ concerns over Italian politics have been weighing on spot in past weeks, and the pressure intensified after the EU rejected the 2019 draft budget submitted by the country last week.
Looking ahead, the ECB is expected to leave its monetary policy unchanged at today’s meeting, while President Draghi is seen reiterating the solid economic conditions in the region although his assessment of inflation should be moderate.
Still in the euro area, the German IFO survey will also be in the limelight along with Italian unemployment figures.
EUR/USD levels to watch
At the moment, the pair is up 0.23% at 1.1418 facing the next hurdle at 1.1498 (10-day SMA) seconded by 1.1520 (21-day SMA) and finalyy 1.1550 (high Oct.22). On the flip side, a break below 1.1381 (low Oct.24) would target 1.1319 (200-week SMA) en route to 1.1299 (2018 low Aug.15).