Friday, January 16, 2015

$EUR/USD dips to lows on US data

The European currency reacted adversely after the release of the inflation figures in the US economy during December, with $EUR/USD falling to the 1.1580/75 region.

$EUR/USD muted, demotivated 

Spot remained vulnerable after consumer prices in the US climbed at an annual pace of 0.8%, bettering forecasts for a 0.7% gain albeit lower than the 1.3% advance from the previous month; on a monthly basis, prices dropped 0.1%, matching expectations. Core prices, which exclude the Food and Energy components, came in below estimates at 1.6% YoY and 0.0% MoM vs. 1.7% and 0.1%, respectively.

Industrial Production figures, Capacity Utilization and the consumer sentiment gauged by the Reuters/ Michigan index are all due next, followed by a speech by FOMC’s Williams.

$EUR/USD key levels

At the moment the pair is losing 0.27% at 1.1586 and a breach of 1.1568 (2015 low Jan.15) would aim for 1.1505 (low Nov.12 2003) and then 1.1445 (low Nov.11 2003). On the flip side, the initial barrier lines up at 1.1647 (hourly high Jan.16) followed by 1.1792 (high Jan.15) and finally 1.1805 (200-h MA).