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EUR/USD treading water around 1.1750, FOMC eyed

6/13/2018, 1:59:10 PMMarket Analysis
EUR/USD treading water around 1.1750, FOMC eyed

The proximity of key events in the euro area and in the US economy is prompting EUR/USD to remain sidelined around the 1.1750 region for the time being.

EUR/USD looks to data, FOMC

The pair keeps the familiar range at the middle of the week, hovering over the mid-1.1700s as global markets remain cautious ahead of the imminent FOMC and ECB meetings.

Spot faded part of last week’s moderate rebound to levels beyond 1.1800 the figure on hopes that the ECB could discuss the timing of the end of the central bank’s bond-buying programme at its meeting on Thursday. However, recent poor data in Germany added to the already disappointing figures in many indicators of the euro bloc, all pouring cold water over such speculations and at the same time removing some tailwinds from the recent up move.

Later in the session, EMU’s Industrial Production figures are due for the month of April along with Q1’s Employment Change results. Across the pond, May’s Producer Prices will precede the FOMC meeting, where consensus sees the Committee hiking rates by 25 bps.

EUR/USD levels to watch

At the moment, the pair is up 0.06% at 1.1752 and a breakout of 1.1840 (high Jun.7) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14). On the flip side, initial contention emerges at 1.1726 (low Jun.8) seconded by 1.1718 (low Dec.12 2017) and finally 1.1617 (low Jun.1).