EUR/USD probes highs near 1.0720 ahead of data

The offered bias around the greenback is allowing EUR/USD to advance further north of the 1.0700 handle, testing daily highs near 1.0720.

EUR/USD attention to data

The pair has been advancing since last Friday, as uncertainty around the Trump’s administration continues to weigh on the buck.

After briefly bottoming out in the vicinity of 1.0620 area on Monday, spot not only managed to revert the drop but it has also shifted the attention back to the upper end of the recent range above 1.0700 the figure ahead of today’s releases in the region.

In fact, advanced Q4 GDP figures are due later in the session followed by preliminary inflation readings for the current month and the unemployment rate.

It is worth mentioning that yesterday’s lower-than-expected German CPI has mitigated growing pressure on the ECB – particularly from Germany – to modify the current QE programme (taper). Later on Monday, ECB’s E.Nowotny deemed that possibility as premature for the time being, triggering the correction lower in EUR.

EUR remains also supported by  speculative positioning, as net shorts have been trimmed to levels last seen in late May during the week ended on January 24, as per the latest CFTC report.

Data wise in the US docket, Q4 Employment Cost Index is due, seconded by the S&P Case-Shiller Index, Chicago PMI and Consumer Confidence measured by the Conference Board.

EUR/USD levels to watch

The pair is now gaining 0.11% at 1.0707 facing the next up barrier at 1.0740 (high Jan.30) followed by 1.0775 (high Jan.24) and finally 1.0798 (high Dec.5). On the other hand, a breakdown of 1.0647 (20-day sma) would target 1.0617 (low Jan.30) en route to 1.0589 (55-day sma).