EUR/USD gathers traction near 1.1720, German CPI on sight
- The pair manages to leave behind lows around 1.1690.
- The greenback erases part of its earlier gains, trades near 94.50.
- German flash CPI, US Q2 GDP figures next of relevance in the docket.
After bottoming out in the 1.1690 area during early trade, EUR/USD has now managed to attract some attention and reclaim 1.1700 the figure and above.
EUR/USD now looks to data, Draghi
The pair remains on the defensive and keeps navigating the low-1.1700s against the backdrop of renewed appetite for the greenback, particularly after the Federal Reserve raised rates yesterday and in light of a potential fourth rate hike by year-end.
Also collaborating with the downbeat tone in EUR, uncertainty around the Italian budget has re-emerged today while Italian policy-makers keep looking for some common ground on the matter.
Later in the day, German advanced inflation figures tracked by the CPI are due ahead of the welcome address by President Draghi at the 3rd Annual ESRB conference in Frankfurt.
Moving forward, another revision of Q2 GDP figures, Initial Claims, Pending Home Sales, Durable Goods Orders and a speech by Chief J.Powell are all expected across the Atlantic.
EUR/USD levels to watch
At the moment, the pair is losing 0.26% at 1.1709 finding immediate contention at 1.1685 (low Sep.27) followed by 1.1664 (21-day SMA) and then 1.1526 (low Sep. 10). On the upside, a breakout of 1.1815 (high Sep.24) would target 1.1853 (monthly high Jun.14) en route to 1.1946 (200-day SMA).