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  • Subdued trading action forces the pair to stay in its range.
  • US Dollar Index rises modestly in the NA session.
  • Friday’s inflation data from the U.S. is likely to be the next significant catalyst.

The EUR/USD pair failed to gather momentum above the 1.12 handle and changed its course in the American trading hours and slumped to a session low of 1.1183. Nevertheless, the fact that there wasn’t a fundamental driver behind this recent action suggests that it’s unlikely to deepen. As of writing, the pair was virtually unchanged at 1.1190.

The shared currency on Wednesday stayed relatively resilient against its rivals in the absence of significant macroeconomic data releases from the euro area. European Central Bank President Mario Draghi didn’t deliver any remarks that could have triggered a reaction from the markets either. While speaking at a Q&A session at the Generation €uro Students’ Award, Draghi said that the ECB would lose its credibility if it were to change its inflation target and noted that the pressure on nominal wages was increasing.

In the second half of the day, investors stayed on the sidelines while waiting for fresh headlines surrounding the U.S.-China trade dispute. White House spokeswoman Sanders during the daily press briefing said they have received an indication that China was willing to make a trade deal.

The US Dollar Index, which has been moving up and down in a tight range since the start of the week, moved higher toward the upper half of its weekly range and was last up 0.1% on the day at 97.65.

The only data from the euro  area on Thursday will be the trade balance from Germany. For the greenback, Friday’s inflation reports is likely to be the next significant catalyst.

Technical levels to watch for