- EUR/USD drops to new 2019 lows at 1.0930
- The Greenback stays firm beyond the 99.00 handle.
- EMU Producer Prices, US ISM manufacturing next on tap.
The shared currency remains under heavy downside pressure so far this week and is motivating EUR/USD to drop further and record new yearly lows at 1.0930.
EUR/USD looks to data, USD-dynamics
The pair is prolonging the leg lower for the seventh consecutive session so far on Tuesday, although managing to regain some composure after reaching new 2019 lows in the 1.0930 level.
The solid momentum in the Greenback remains the key driver behind the down move in spot to levels last seen in May 2017, while declining yields in Germany, poor results from data releases in Euroland and Brexit concerns have been also adding to the generalized offered bias in EUR.
Later in the day Producer Prices in the euro bloc will be the sole release in the Old Continent, while the key ISM Manufacturing is expected across the pond along with the speech by Fed’s E.Rosengren.
What to look for around EUR
Spot remains on the defensive amidst the better tone in the buck and somewhat renewed optimism on the US-China trade front, which have added to the rebound in US yields. Recent poor prints from the domestic docket have added extra downside pressure to the single currency and strengthened further the need for ECB stimulus, which is likely to be delivered at the bank’s meeting later this month. This view is also expected to keep occasional bullish attempts well contained for the time being. On the political front, Italian effervescence looks dissipated for the time being, while concerns keep growing around Brexit and the political scenario across the Channel.
EUR/USD levels to watch
At the moment, the pair is losing 0.23% at 1.0942 and a breakdown of 1.0930 (2019 low Sep.3) would target 1.0839 (monthly low May 11 2017) en route to 1.0569 (monthly low Apr.10 2017). On the upside, the next hurdle lines up at 1.1052 (10-day SMA) followed by 1.1104 (21-day SMA) and finally 1.1163 (high Aug.26).
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