- The pair comes under further pressure and tests lows near 1.1360.
- The greenback extends its march north and eyes 96.80.
- EMU flash Q3 GDP, German advanced CPI next of relevance in spot.
The selling pressure around the single currency remains well and sound so far in the first half of the week, with EUR/USD now dropping to the 1.1360 area.
EUR/USD now looks to data
The sentiment around EUR remains fragile despite some optimistic news coming in from Italy over the weekend, while market participants continue to adjust to yesterday’s news citing German Chancellor A.Merkel will not seek neither re-election nor another position in the Parliament after 2021.
Merkel’s comment came after its party won the regional elections in the Hesse state over the weekend although with a significant drop of voters’ support, which added to the already weakened performance of the CDU party for quite some time now.
In the data space, advanced Spanish CPI figures showed consumer prices are expected to rise 0.2% MoM and 2.3% on a yearly basis in October. Later in the day, EMU’s advanced Q3 GDP figures are due along with German flash CPI results.
Across the pond, the always-relevant Consumer Confidence gauge measured by the Conference Board is only of note.
EUR/USD levels to watch
At the moment, the pair is down 0.09% at 1.1362 and a break below 1.1356 (low Oct.25) 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 1.1431 (10-day SMA) seconded by 1.1485 (21-day SMA) and finally 1.1550 (high Oct.22).
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