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EUR/USD around 1.2890 ahead of German data

FXstreet.com (Barcelona) - The single currency is posting meager gains against the buck on Tuesday, ahead of German Producer Prices due later.

Prior surveys expect prices to rise at an annual pace of 0.2% in April, lower that March’s 0.4%. On a monthly basis, prices are expected to contract 0.1% vs. -0.2% previous.
Continuing with the euro docket, Spain will sell 3m and 9m Letras, in another attempt to follow the recent downtrend in yields.

At the moment the cross is up 0.05% at 1.2889 with the next resistance at 1.2930 (high May 16) ahead of 1.2943 (high May 15).
On the flip side, support levels align at 1.2796 (low May 17) followed by 1.2740 (2013 low Apr.4) and finally the psychological mark at 1.2700.

Fed-Speak to dominate EUR/USD trading in coming days

The EUR/USD was able to claw back a small portion of its losses suffered last week, finishing the day up 64 pips at 1.2884. Economic news was light on the session with European markets closed and no releases out of the US. Market participants will be expecting volatility to really pick up later in the week when we see Fed Chariman Bernanke’s testimony to Congress, the release of the most recent FOMC minutes, and a number of other regional Fed speakers on the wires. Given the recent market buzz of the prospects of Fed tapering QE, the next few days could help set a more established trend for the pair as we near month end.
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Germany: Apr Producer Price Index (YoY) up 0.1%; (MoM) falls 0.2%

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