EUR/USD testing lows near 1.1830 on German CPI
- German CPI surprised to the upside.
- Spot remains subdued near 1.1830/20.
- Yellen next on tap.
The single currency remains on the defensive on Wednesday and is now dragging EUR/USD to the area of session lows in the 1.1830/20 band.
EUR/USD weaker despite German data
The pair remains unable to gather some upside traction despite German CPI figures surprised markets to the upside today. In fact, German consumer prices tracked by the CPI are expected to rise at an annualized 1.8% in November and 0.3% inter-month.
Further data saw consumer prices gauged by the broader HICP seen rising above estimates 1.8% on a yearly basis and 0.3% MoM.
In the meantime, spot is suffering the continuation of the buying interest around the greenback and the sharp sell-off in EUR/GBP in response to positive Brexit headlines supporting the Sterling.
Across the pond, the second revision of the US Q3 GDP will be the salient event today seconded by October’s pending home sales. Chief J.Yellen will speak before the Joint Economic Committee of Congress on economic outlook, while NY Fed W.Dudley (permanent voter, centrist) and San Francisco Fed J.Williams (2018 voter, centrist) are also scheduled to speak. Additionally, the Fed will publish its Beige Book.
EUR/USD levels to watch
At the moment, the pair is losing 0.10% at 1.1828 facing the next support at 1.1824 (10-day sma) followed by 1.1776 (55-day sma) and finally 1.1713 (low Nov.21). On the other hand, a breakout of 1.1961 (high Nov.27) would target 1.2033 (high Sep.20) en route to 1.2069 (high Aug.29).