- The pair moves higher to the 1.1690 region, or session tops.
- The greenback stays subdued in the mid-94.00s.
- German advanced CPI came in below expectations.
The European currency keeps the bid tone at the beginning of the week and is now pushing EUR/USD to test the vicinity of 1.1700 the figure.
EUR/USD now looks to US data
Spot remains bid on Monday despite advanced German inflation figures for the current month failed to surprise markets to the upside.
In fact, consumer prices tracked by the headline CPI are now expected to rise at an annualized 2.0% and 0.3% on a monthly basis, both prints coming in below initial estimates.
Still in Germany, the broader HICP now shows that prices are seen gaining 2.1% over the last twelve months and 0.4% inter-month, this time matching consensus.
In the meantime, spot is up for the second session in a row, recovering ground lost after Thursday’s ECB-led bearish ‘outside day’ lacked of follow through. Further consolidation is thus likely, although the pair’s negative stance appears entrenched while below the short-term resistance line off June’s peaks at 1.1853, today at 1.1735.
Looking ahead, US Pending Home Sales for the month of June and the Dallas Fed manufacturing index are due across the Atlantic.
EUR/USD levels to watch
At the moment, the pair is gaining 0.21% at 1.1683 and a breakout of 1.1749 (high Jul.23) would open the door to 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14). On the downside, initial contention lies at 1.1625 (low Jul.27) followed by 1.1575 (low Jul.19) and then 1.1527 (low Jun.28).
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