EUR/USD muted post-EMU CPI

EUR/USD maintains its daily range following the release of advanced inflation figures in the euro region.

EUR/USD unchanged on data

The pair remained apathetic after preliminary inflation figures in Euroland showed consumer prices are expected to rise at an annualized 2.0% during February, matching prior surveys and up from January’s 1.8%. Core Prices rose at an annualized 0.9%.

In the meantime, the persistent buying sentiment around the buck keeps the pair under pressure close to the critical support at 1.0500 the figure ahead of the key speech by Chief J.Yellen on Friday.

Collaborating with the pair’s decline, recent Fedspeak and auspicious results from the US docket have lifted US yields, adding to the view of a stronger buck. Furthermore, New York Fed and permanent FOMC voter W.Dudley said earlier in the week that the case for further tightening has become ‘compelling’, while Dallas Fed R.Kaplan noted that the next rate hike would come ‘in the near future’.

EUR/USD levels to watch

At the moment the pair is losing 0.20% at 1.0526 and a breach of 1.0522 (low Mar.2) would open the door to 1.0492 (low Feb.22) and finally 1.0452 (low Jan.11). On the flip side, the next hurdle lines up at 1.0594 (55-day sma) followed by 1.0619 (20-day sma) and then 1.0632 (high Feb.28) .

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