EUR/USD´s recovery loses momentum
- EUR/USD retreats from its daily highs, but holds on to daily gains.
- Macroeconomic data being ignored, sentiment still leading the way.
The EUR/USD pair regained the 1.2300 level, as despite EU data was generally negative, while US one came upbeat, major pairs are being led by sentiment. Following Wednesday's sell-off, US indexes are well onto gains so far today, with the DJIA up a whopping 300 points at the time of writing, after losing 167 in the previous session, following FOMC's Meeting Minutes.
EU data came below expected as the German IFO survey showed that sentiment among local business fell this February, with the index down to 115.4 from 117.6 in January, also missing expectations of 117.0, while the assessment of the current situation shrunk to 105.4 from a previous 108.3. The ECB released the Accounts of its latest monetary policy meeting, pretty much maintaining the cautious tone. EU Policymakers think is premature to change its forward guidance, as inflation remains well below the central bank's target of just below 2%, adding, however, that they could revisit its forward guidance on quantitative easing early this year, bolstering speculation that they may make some fresh announcements in March, giving the common currency a short-lived boost.
In the US, weekly unemployment claims fell to 222K for the week ended February 16th, better, than the 230K expected, while the Kansas Fed manufacturing activity index for February printed 21, largely surpassing the previous 16 or the expected 18.
The EUR/USD pair peaked at 1.2351 after bottoming for the day at 1.2259 during Asian trading hours, now around 1.2325, and below a critical resistance, the 61.8% retracement of the February rally around 1.2340. Next in line, should the pair clears this up, would be the 1.2380 region, where the pair has the 50% retracement of the same rally, although seems unlikely that this last would be reached today, at least as long as yields remain near their multi-year highs.
Supports come at the 1.2300 round figure, followed by the mentioned daily low at 1.2259, and the February monthly low at 1.2205.