FXStreet (Edinburgh) – The European currency remains unable to gather further traction on Monday, leaving EUR/USD to trade in the lower band of the daily range near 1.0570.
EUR/USD focus on German CPI
Month-end flows plus an upbeat tone from the US Treasuries continue to sustain the USD-rally for the time being, while market participants remain cautious ahead of the ECB meeting on Thursday. It is worth mentioning that market expectations see the central bank either lowering its deposit rate or expanding the current QE programme (or a combination of both).
In the very near term, today’s flash German inflation figures for the current month are due in the European midday, with the CPI expected to tick higher to 0.4% on a yearly basis (vs. 0.3% previous).
EUR/USD levels to watch
As of writing the pair is losing 0.13% at 1.0579 with the next support at 1.0519 (low Apr.13) en route to 1.0500 (psychological level) and then 1.0456 (2015 low Mar.16). On the upside, a breakout of 1.0829 (high Nov.12) would aim for 1.1025 (55-day sma) and finally 1.1043 (200-day sma).
(Market News Provided by FXstreet)