EUR/USD turns positive above 1.1850 post-US PCE
- US PCE failed to surprise markets to the upside.
- US personal income/spending came in mixed.
- Spot finds support around 1.1810.
The greenback is now shedding part of its initial gains and is helping EUR/USD to regain the 1.1850 area and above following US data releases.
EUR/USD bid after US data
The pair accelerated the rebound after US inflation figures tracked by the core PCE rose in line with expectations for the month of October, with consumer prices gaining 0.2% inter-month and 1.4% over the last twelve months.
Further US data saw personal income expanding at a monthly 0.4% and personal spending up 0.3% MoM.
Additionally, the usual report from the US labour market saw initial claims rising 238K WoW and taking the 4-wqeek average to 242.25K from 240.00K.
The pair tested the area of daily lows near 1.1810 in response to lower-than-expected advanced CPI in the euro area for the month of November, although dip-buyers emerged and are now pushing spot back to the mid-1.1800s.
EUR/USD levels to watch
At the moment, the pair is gaining 0.08% at 1.1856 and a breakout of 1.1961 (high Nov.27) would target 1.2033 (high Sep.20) en route to 1.2069 (high Aug.29). On the other hand, the immediate support aligns at 1.1810 (low Nov.30) followed by 1.1774 (55-day sma) and finally 1.1713 (low Nov.21).