- The pair is now trading on a volatile mood around the 1.1400 handle.
- The greenback eases from daily tops and returns to 96.40.
- All the attention remains on German politics.
The European currency is trading in quite a volatile fashion at the beginning of the week, prompting EUR/USD to swing between 1.1420 and 1.1360 so far.
EUR/USD focused on Germany, US docket
Spot managed to advance to session tops in the 1.1420 region and is now looking to consolidate in the 1.1400 neighborhood following rumours and counter-rumours regarding the likeliness that Angela Merkel could be candidate for Chancellor and member of Parliament after 2021.
Fresh jitters in the German political scenario emerged after Chancellor Merkel’s party won the regional poll in the Hesse state despite a large drop in voters’ support, showing that the weakness around the CDU party remains largely unabated.
Moving forward, the greenback should be in centre stage later in the session in light of the publication of September’s Personal Income/Spending and inflation figures measured by the PCE.
EUR/USD levels to watch
At the moment, the pair is losing 0.01% at 1.1401 and a break below 1.1332 (low Oct.26) would target 1.1316 (200-week SMA) en route to 1.1299 (2018 low Aug.15). On the flip side, the immediate hurdle aligns at 1.1456 (10-day SMA) seconded by 1.1497 (21-day SMA) and finally 1.1550 (high Oct.22).
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