EUR/USD flirting with highs near 1.10 post-CPI

The single currency is now picking up extra pace, sending EUR/USD to the boundaries of the 1.1000 handle during the European morning.

EUR/USD bid after data

The pair is posting moderate gains at the beginning of the week, rebounding from multi-month lows in the 1.0965/60 band seen in overnight trade and testing the relevant area of 1.1000 the figure, coincident with the now 7-month resistance line (prev. support).

Spot finds bids following a knee-jerk in the greenback, while final inflation figures in the euro area have matched preliminary readings, as expected.

There are no further releases scheduled in Euroland today, while President Draghi is due to speak at the Reception for the Opening of the European Cultural Days 2016 organised by the ECB and Governing Council member Y.Mersch is expected to give a speech upon the signing of the Memorandum of Understanding on Chair in Capital Markets and Post-Trade organised by Université de Luxembourg in Luxembourg.

Across the pond, the NY Empire State manufacturing gauge is due ahead of September’s Industrial Production, Capacity Utilization and the speech by FOMC’s VP S.Fischer on ‘Low Interests Rates’ at the Economic Club of New York Luncheon.

In addition, the latest CFTC report showed EUR speculative net shorts have increased to the highest level since early August during the week ended on October 11.

EUR/USD levels to watch

The pair is now gaining 0.19% at 1.0993 facing the next resistance at 1.1003 (7-month prev. support now resistance line) followed by 1.1051 (4-month prev. support now resistance line) and finally 1.1146 (20-day sma). On the flip side, a breakdown of 1.0964 (low Oct.17) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24).