- The pair trims some of yesterday’s gains and trades near 1.1290.
- The greenback appears sidelined just above the 97.00 handle.
- Trade, Brexit, data expected to drive sentiment today.
Following Thursday’s advance, EUR/USD has opened the session on a soft tone and slips back to levels below the 1.1300 handle.
EUR/USD looks to data
The pair is navigating the lower bound of the weekly range in the vicinity of 1.1300 the figure and is looking to close the second consecutive week with losses amidst re-emerging US-China trade jitters and the persistent bid mood surrounding the buck.
In fact, investors appeared to have moderated somewhat their expectations of any positive results from the current trade negotiations in Beijing, thus removing some tailwinds from the sentiment in the risk-associated space.
Data wise today in the euro area, Spanish CPI for the month of January is due ahead of trade balance figures in the broader euro bloc. Across the ocean, January’s Industrial Production and Capacity Utilization are coming up next seconded by the the Empire State index and the flash U-Mich gauge for the month of February.
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 losing 0.07% at 1.1286 and 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). On the flip side, the next up barrier emerges at 1.1294 (100-hour SMA) seconded by 1.1332 (200-week SMA) and finally 1.1341 (high Feb.13).
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