- The pair finds support in the vicinity of 1.1500 the figure.
- The greenback extends the upside beyond the 95.00 handle.
- Consumer Confidence coming up next in the US docket.
After bottoming out in levels just above 1.1500 the figure, EUR/USD met some dip-buyers and is now testing the 1.1560 region.
EUR/USD looks to Italy
The sharp retracement in the shared currency appears to have found some contention around the 1.1500 milestone today after Italian M5S’s leader L. Di Maio said he never favoured exiting the euro area.
Di Maio’s comments come amidst an increasing selling pressure around EUR, while yields in the Italian money markets continue their way up. In this regard, spreads between German and Italian 10-year yields continue to widen, fuelling the selling sentiment among investors.
On the data front, M3 Money Supply in the euro bloc expanded 3.9% YoY in April and Private Sector Loans rose at an annualized 2.9%, missing consensus. Later in the day ECB’s Y.Mersch and S.Lautenschaelager are due to speak.
More from today’s calendar, the Consumer Confidence gauge measured by the Conference Board will be the salient release seconded by the S&P/Case-Shiller index.
EUR/USD levels to watch
At the moment, the pair is losing 0.58% at 1.1555 and a break below 1.1511 (2018 low May 29) would target 1.1479 (low Jul.20 2017) en route to1.1373 (low Jul.13 2017). On the other hand, the next hurdle emerges at 1.1728 (10-day sma) seconded by 1.1829 (high May 22) and finally 1.1830 (21-day sma).
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