EUR/USD unchanged around 1.10 post-EMU CPI
- EUR/USD keeps the familiar range around 1.10.
- EMU flash CPI came in at 1.0% YoY in November.
- German jobless rate stayed unchanged at 5.0%.
The price action around EUR/USD remains apathetic on Friday despite the better-than-expected results from the EMU and German dockets.
EUR/USD holding on around 1.10
The pair is trading around the 1.10 handle for yet another session on Friday in the wake of somewhat auspicious results from Germany and the broader Euroland.
In fact, the jobless rate stayed put at 5.0% in Germany for the month of November, while the unemployment diminished by 16K, bettering consensus. In the euro region, flash inflation figures tracked by the headline CPI showed consumer prices are expected to raise at an annualized 1.0% this month (from October’s 0.7%) and 1.3% when stripping food and energy costs; both prints surpassing forecasts.
In the same line, French CPI is seen rising 1.0% YoY and Italian consumer prices are expected to gain 0.4% from a year earlier.
Further out, scarce volatility is the name of the game on Friday following the inactivity in US markets on Thursday and today’s shortened NA session.
What to look for around EUR
Spot has been rejected from the vicinity of the 1.1100 barrier once again last week, sparking a corrective downside to the 1.10 area and below, which continues to act as a solid contention zone. As always, EUR is expected to keep tracking trade headlines and USD-dynamics for the time being. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.
EUR/USD levels to watch
At the moment, the pair is losing 0.02% at 1.1002 and a breakdown of 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1). On the upside, the next hurdle emerges at 1.1038 (55-day SMA) seconded by 1.1074 (100-day SMA) and finally 1.1097 (monthly high Nov.21).