- The pair remains under pressure and tests lows near 1.1270.
- EMU’s flash GDP matched estimates for Q3.
- US inflation figures next of relevance later in the session.
The offered bias remains intact around the shared currency on Wednesday and is now forcing EUR/USD to slip back to the 1.1270 region, or fresh daily lows.
EUR/USD looks to Brexit, data
Spot remains on the defensive so far today following a generalized softer tone in the risk-associated complex, in turn lending extra support to the buck.
In the data space, advanced GDP figures now see the euro area expanding 0.2% inter-quarter during the July-September period and 1.7% over the last twelve months, both prints coming in in line with forecasts. Further data saw Industrial Production in the bloc contracting less than expected 0.3% MoM.
EUR, in the meantime, keeps looking to the critical meeting between UK’s PM Theresa May and her cabinet to discuss the draft of a deal with EU, scheduled at 14GMT.
Later in the NA session, October’s CPI figures are due followed by the usual weekly report on US crude oil supplies.
EUR/USD levels to watch
At the moment, the pair is losing 0.20% at 1.1267 and a break below 1.1214 (2018 low Nov.12) would target 1.1188 (61.8% Fibo retracement of the 2017-2018 up move) en route to 1.1118 (low Jun.20 2017). On the flip side, the next resistance emerges at 1.1319 (high Nov.14) seconded by 1.1357 (10-day SMA) and then 1.1389 (21-day SMA).
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