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EUR/USD gyrates around 1.2300 ahead of PMIs

4/3/2018, 2:28:49 PMTrading Strategies
EUR/USD gyrates around 1.2300 ahead of PMIs

The lack of catalysts around the single currency is leaving EUR/USD to the mercy of USD-dynamics so far this week, where jitters over US-China potential trade war continue to dominate the mood among investors.

EUR/USD focused on risks

The pair is alternating gains with losses during the first half of the week, trading within a narrow range around the key 1.2300 area and always against the backdrop of a steady performance from the greenback.

Spot managed to leave behind initial weakness around the 1.2290 region, as concerns over the US-China trade war gave some legs to the buck.

In the data space, German Retail Sales expanded at a monthly 0.7% in February, while February’s final PMIs in the euro area are due later in the region.

Across the pond, Minneapolis Fed N.Kashkari (non voter, dovish) speaks at a Regional Economic Forum ahead of the speech by FOMC’s L.Brainard (permanent voter, dovish) on ‘Financial Stability’.

EUR/USD levels to watch

At the moment, the pair is advancing 0.07% at 1.2310 and a break above 1.2477 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the other hand, immediate contention emerges at 1.2282 (low Mar.29) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9).