EUR/USD off highs post-IFO, around 1.2350

• The pair faded the spike to the 1.2390 region, back near 1.2350.
• German IFO came in mixed, EMU’s flash PMI missed estimates.
• US data next on tap, focus on tariffs on China.

After advancing to the area of daily highs just below 1.2400 the figure, EUR/USD sparked a knee-jerk to the current 1.2355/50 band.

EUR/USD gives away gains on poor data

The pair faded the earlier bullish attempt to the 1.2400 area after the German IFO came in mixed for the month of March and flash PMIs surprised to the downside in the core euro bloc.

In fact, German Business Expectations and Business Climate matched forecasts albeit they dropped from the previous readings. On the brighter side, Current Assessment surpassed expectations at 125.9.

Still in Euroland, preliminary Manufacturing and Services PMIs in both Germany and the euro area came in on the soft side for the current month.

Despite the disappointing results in the EMU’s calendar, the pair keeps the bid tone against the backdrop of increasing selling pressure around the buck, particularly accelerated in the wake of yesterday’s ‘dovish hike’ by the Federal Reserve.

EUR/USD levels to watch

At the moment, the pair is gaining 0.11% at 1.2352 and a breakout of 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16). On the flip side, immediate contention emerges at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).