- The pair recovers further ground and tests highs near 1.1240.
- The greenback keeps correcting lower on risk-on mood.
- EMU advanced CPI figures next of relevance in the calendar.
The upbeat sentiment around the risk-associated space remains well and sound so far today and is lifting EUR/USD to fresh daily highs near 1.1240.
EUR/USD focused on EMU data
After four consecutive daily pullbacks, the pair is now showing some signs of life and it has managed to leave behind the area of recent lows near the 1.1200 milestone.
Better results from the Chinese manufacturing sector during early trade bolstered somewhat the sentiment surrounding the riskier assets today, lending extra legs to the recovery in spot.
Looking ahead, advanced inflation figures in Euroland for the month of March will grab all the attention ahead of key Retail Sales and the ISM manufacturing across the ocean due later in the NA session.
What to look for around EUR
Market participants have left behind the recent and renewed dovish stance from the ECB, focusing instead on the broad risk-appetite trends, USD-dynamics and domestic data. Regarding the latter, and looking to the broader picture, the view of a slowdown in the bloc has been ‘confirmed’ recently following disappointing advanced PMIs in core Euroland and below-consensus German flash CPI. This, in turn, should add to the idea of a ‘patient for longer’ stance from the ECB. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among voters.
EUR/USD levels to watch
At the moment, the pair is gaining 0.17% at 1.1236 and a break above 1.1291 (21-day SMA) would target 1.1355 (100-day SMA) en route to 1.1448 (high Mar.20). On the flip side, the next support emerges at 1.1209 (low Mar.29) followed by 1.1176 (low Mar.7) and finally 1.1118 (monthly low Jun.20 2017).
Share
