EUR/USD remains capped by the 1.1700 region

• EUR/USD upside appears limited by the 1.1700 area so far.
• The dollar trades closer to fresh 2021 highs recorder earlier.
• The US Philly Fed Index disappointed expectations in August.

The single currency remains depressed and prompts EUR/USD to remain side-lined below the 1.1700 mark on Thursday.

EUR/USD weak on dollar gains

EUR/USD manages to keep a decent distance from earlier lows in the 1.1660 region, although a convincing move above 1.1700 still remains elusive.

The greenback, in the meantime, trades on a firm note and extends the weekly gains helped by the risk-off mood and the rising prospects of QE tapering at some point towards the end of the year. Gains in the buck comes amidst the drop in US 10-year yields back to the sub-1.25% area after climbing to the vicinity of 1.30% in the wake of the FOMC Minutes on Wednesday.

Earlier in the docket, the EMU's Current Account surplus expanded to €24 billion in June.

In the US docket, weekly Claims rose by 348K and the Philly Fed Index eased to 19.4 for the current month, both readings missing forecasts. Later in the session, the CB will release the Leading Index during last month.

EUR/USD levels to watch

So far, spot is losing 0.11% at 1.1696 and a breakdown of 1.1665 (2021 low Aug.19) would target 1.1612 (monthly low Oct.20 2020) en route to 1.1602 (monthly low Nov.4 2020). On the upside, the next hurdle emerges at 1.1804 (weekly high Aug.13) followed by 1.1845 (50-day SMA) and finally 1.1908 (monthly high Jul.30).