- The pair posts decent gains around 1.1320.
- The greenback bounces off lows around 96.60.
- Final February CPI figures next on tap in Euroland.
The shared currency seems to have resumed the upside this week and is now motivating EUR/USD to retake the low-1.1300s ahead of the opening bell in the Old Continent.
EUR/USD looks to trade, data
Spot is recovering from yesterday’s pullback on the back of the renewed softer tone surrounding the greenback and despite fresh jitters on the US-China trade front.
On another direction, risk appetite trends remained muted after the UK House of Commons passed the motion for an extension of Article 50, which has now opened the door for another meaningful vote next week, while negotiations between the UK and the EU are expected to resume in the next hours.
Data wise in Euroland, final February inflation figures in the broader euro area are due next along with Italian results from the industrial sector. Earlier in the morning, German Wholesale Prices rose 0.3% MoM during last month and 1.6% over the last twelve months.
What to look for around EUR
Market participants appear to have already adjusted to the recent and renewed dovish stance from the ECB, focusing instead on the broad risk-appetite trends as the main driver of the price action in the near term. In the longer run, the performance of the economy in the region should remain in centre stage along with prospects of re-assessment of the ECB’s monetary policy. In this regard, it is worth mentioning that investors keep pricing in the first rate hike by the central bank at some point in H2 2020. 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 0.13% at 1.1317 and a break above 1.1338 (high Mar.13) would target 1.1366 (55-day SMA) en route to 1.1419 (high Feb.14). On the other hand, the next support aligns at 1.1285 (10-day SMA) followed by 1.1176 (2019 low Mar.7) and finally 1.1118 (monthly low Jun.20 2017).