EUR/USD keeps the trade above 1.1500 ahead of US CPI
- The pair reverts Thursday’s pullback and trades around 1.1520.
- The greenback stays under pressure although above the 95.00 handle.
- US inflation figures tracked by the CPI next of relevance in the docket.
The single currency is extending the sideline mood in the upper end of the weekly range vs. the greenback, with EUR/USD managing to regain the 1.1520 area after briefly dipping to sub-1.1500 levels on Thursday
EUR/USD looks to US data, risk trends
The pair keeps the bid tone well and sound so far today, navigating the area of 3-month peaks well above the critical 1.1500 the figure.
Recent progress in US-China trade talks has been underpinning the improved mood in the risk-associated space as of late, all coupled with a renewed and strong selling bias hitting the greenback.
In the data space today, the most salient event will be the publication of US inflation figures tracked by the CPI for the month of December.
What to look for EUR/USD
Near term price action in spot continues to be almost exclusively driven by USD-dynamics and the positive risk appetite trends amidst easing effervescence in the US-China trade dispute. Closer to home, the Italian political scenario, upcoming discussions over the French budget and the palpable slowdown in German fundamentals in Q3-Q4 2018 should keep investors vigilant and could undermine extra gains in EUR in the medium term.
EUR/USD levels to watch
At the moment, the pair is gaining 0.23% at 1.1526 facing the next hurdle at 1.1570 (2019 high Jan.10) seconded by 1.1621 (high Oct.16 2018) and finally 1.1733 (high Aug.28 2018). On the flip side, a breakdown of 1.1477 (100-day SMA) would target 1.1409 (21-day SMA) en route to 1.1306 (2019 low Jan.3).