EUR/USD testing highs around 1.1600 ahead of US data
- The pair manages to regain the vicinity of the 1.1600 handle.
- The greenback eases from YTD peaks beyond 95.00 the figure.
- US Empire State index, Industrial Production next of relevance.
After testing the mid-1.1500s earlier in the session, EUR/USD has now managed to regain some traction and is currently testing the 1.1600 neighbourhood.
EUR/USD weaker post-ECB, looks to US data, Germany
Despite posting small gains so far today, spot remains under pressure as market participants continue to adjust to the recent dovish stance from the European Central Bank at its meeting on Thursday.
In addition, news from Germany indicating that there could be some conflicts between Merkel’s CDU party its ally CSU appears to have brought in some volatility to the pair.
In the data space, EMU’s final CPI rose at an annualized 1.9%, while Core CPI rose 1.1% YoY, both prints matching the preliminary readings. Further data in Euroland saw the trade surplus shrinking to €16.7 billion in April.
Later in the US docket, the regional manufacturing gauge by the Empire State is due seconded by Industrial Production and the advanced print of Consumer Sentiment for the current month.
EUR/USD levels to watch
At the moment, the pair is gaining 0.15% at 1.1588 facing the next resistance at 1.1617 (low Jun.1) seconded by 1.1705 (21-day sma) and finally 1.1720 (10-day sma). On the other hand, a breakdown of 1.1508 (2018 low May 29) would target 1.1479 (low Jul.20 2017) en route to 1.1312 (monthly low Jul.5 2017).