- The pair extends the drop below 1.1600 the figure on Friday.
- The greenback regains the 95.00 milestone and above.
- EMU’s CPI figures failed to surprise markets today.
The selling pressure around the single currency remains unabated so far today and is now forcing EUR/USD to break below the key support at 1.1600 the figure, clinching at the same time fresh 2-week lows.
EUR/USD weaker on Italy, CPI, USD
The pair is navigating fresh multi-day lows in the vicinity of 1.1580 following renewed concerns over the Italian fiscal scenario after the government announced earlier in the day a 2.4% budget deficit.
Italian stock markets are also being hit, with the banking sector taking the bulk of the impact. In the same line, yields of the Italian 10-year reference keep pushing higher and widening the gap vs. their German peers.
In addition, preliminary inflation figures in Euroland keep showing lack of upside traction and are expected to rise 2.1% YoY in September, while core prices are seen advancing 0.9% on a yearly basis.
Moving forward, US Personal Income/Spending and inflation figures tracked by the PCE for the month of August will be in centre stage seconded by the Chicago PMI and the final print of the US Consumer Sentiment.
EUR/USD levels to watch
At the moment, the pair is losing 0.52% at 1.1580 and a breakdown of 1.1526 (low Sep. 10) would target 1.1508 (low May 29) en route to 1.1299 (2018 low Aug.15). On the flip side, the next up barrier aligns at 1.1815 (high Sep.24) seconded by 1.1853 (monthly high Jun.14) and finally 1.1944 (200-day SMA).
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