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EUR/USD eyes 1.10 on EMU CPI

FXStreet (Edinburgh) - The euro is now advancing further vs. the dollar, lifting EUR/USD to the boundaries of the critical barrier at 1.1000.

EUR/USD stronger on data

Spot saw its upside boosted after core consumer prices in the euro area rose more than previously estimated on a year to May, 0.9% vs. 0.7% expected; headline consumer prices also surprised to the upside, gaining 0.3% YoY vs. 0.2% anticipated.

Next of relevance for the pair will be US Factory Orders, expected to come in flat on a monthly basis during April, followed by the Total Vehicle Sales in May and the IBD/TIPP Economic Optimism gauge.

EUR/USD levels to watch

The pair is now up 0.55% at 1.0988 with the next resistance at 1.0994 (high Jun.2) ahead of 1.1006 (high May 29) and then 1.1010 (high May 25). On the flip side, a breach of 1.0867 (low May 28) would aim for 1.0819 (low May 27) and finally 1.0800 (psychological level).

EUR/JPY hits fresh 2-week highs, just shy of 137

The shared currency prolongs its upward trajectory versus the Japanese yen in the European session, lifting EUR/JPY closer towards 137 handle, mainly driven by broad euro strength after the Euro zone returned to inflation after five months of muted consumer price growth.
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GBP/USD rejected at 1.5250

GBP/USD paused its upward rally and eased-off highs in the mid-European session, having faced rejection near 1.5250 levels. The major rallied beyond 1.52 handle as traders cheered above estimates construction PMI and mortgage approvals numbers, providing a much-needed impetus to the pound.
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