EUR/USD firmer near 1.1350 post-ECB minutes, trade hopes

• The pair stays bid in the mid-1.1300s on USD-selling.
• ECB minutes said growth seen below potential medium term.
• US Philly Fed index next of relevance in the docket.

The greenback faded the earlier spike and is now allowing EUR/USD to rebound to the 1.1355/60 band, at shouting distance from session highs.

EUR/USD up on trade hopes, looks to US data

Spot has picked up extra pace after US Secretary of State M.Pompeo highlighted the progress made in recent US-China trade talks.

Back to the ECB, its minutes noted that uncertainty keeps running high despite members see the likelihood of a recession as low for the time being. In addition, the ongoing slowdown could is expected to last more than expected, while emerging weakness carries the potential to impact on inflation expectations. Regarding the bank’s guidance, members noted the new TLTRO should be aimed to objectives of monetary policy and its analysis needs to proceed swiftly.

Moving forward, and across the pond, the Philly Fed manufacturing index will be the salient event later in the session.

What to look for around EUR

The shared currency continues to look to developments from the US-China trade talks for near term direction as well as any headlines from the effervescence on the US-EU trade front. Disappointing advanced prints from manufacturing PMIs in Germany and the euro bloc appear to have exacerbated concerns over the deterioration in the bloc’s fundamentals and casted further shadows over the probability of any action on rates from the ECB this year.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1353 facing the next up barrier at 1.1371 (high Feb.20) seconded by 1.1382 (55-day SMA) and then 1.1394 (100-day SMA). On the other hand, a break below 1.1308 (10-day SMA) would aim for 1.1234 (2019 low Feb.15) and finally 1.1215 (2018 low Nov.12).