EUR/USD retakes 1.1300 on poor US Retail Sales, PPIs

• Spot rebounds and regains the 1.1300 handle.
• US Retail Sales contracted 1.2% MoM in December.
• US Producer Prices dropped 0.1% MoM in January.

A bout of USD selling has motivated EUR/USD to jump to levels above 1.1300 the figure, printing at the same time fresh daily highs.

EUR/USD bid post-US data

The pair quickly moved higher after US headline Retail Sales unexpectedly contracted at a monthly 1.2% during last month and 1.8% when comes to Core sales.

Further disappointing results from the US calendar saw Producer Prices contracting at a monthly 0.1% in January and rising 2.0% from a year earlier. Additionally, Initial Claims rose by 239K WoW, taking the 4-Week Average to 231.75k from 225.00K.

What to look for around EUR

EUR has come under strong selling pressure in past sessions against the backdrop of rising concerns over the slowdown in the region and speculations that the ECB could refrain from acting on rates this year and extend further, instead, the current ‘pause-mode’. Additionally, political concerns remain well and sound in Euroland as we get closer to the EU parliamentary elections: snap elections in Spain, the still unresolved issue of the ‘yellow vests’ in France and the omnipresent effervescence in the Italian political scenario seem to be preparing the scenario for an increasing presence of populism in the Old Continent.

EUR/USD levels to watch

At the moment, the pair is gaining 0.31% at 1.1294 facing the next hurdle at 1.1345 (10-day SMA) seconded by 1.1356 (23.6% Fibo of the September-November drop) and then 1.1385 (55-day SMA). On the other hand, a break below 1.1248 (2019 low Feb.14) would target 1.1215 (2018 low Nov.12) en route to 1.1118 (monthly low Jun.20 2017).