EUR/USD muted post-EMU data, US PCE eyed

The common currency remained mostly apathetic following releases in the euro region today, with EUR/USD hovering over the mid-1.0900s.

EUR/USD ignored data, attention to US PCE

The pair kept the composure after inflation figures tracked by the CPI have matched expectations for the current month. In fact, headline consumer prices rose at an annualized 0.5%, while Core prices advanced 0.8% over the last twelve months.

Regarding GDP, the economy in the region is seen expanding at an annual pace of 1.6% during the third quarter and 0.5% QoQ, matching prior surveys.

In the meantime, the greenback remains well bid against a backdrop of the continuation of the initial risk-off sentiment, all ahead of US inflation figures gauged by the PCE and September’s Personal Income/Spending.

Momentum around EUR has deflated after last week’s strong advance following a better mood around USD, while speculative positioning keeps collaborating with the downside, as EUR speculative net shorts have climbed to the highest level since late January during the week ended on October 25, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now retreating 0.28% at 1.0955 and a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015). On the other hand, the next hurdle aligns at 1.0995 (high Oct.28) followed by 1.1018 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20).