EUR/USD muted on EMU data

FXstreet.com (Edinburgh) -The bloc currency remained indifferent after the EMU’s Current Account surplus narrowed below expectations in June, keeping the EUR/USD around 1.3340/50.

EUR/USD focus on CPI

The EMU’s Current Account surplus shrunk to €16.9 billion vs. €19.0 billion expected, although the pair posted almost no reaction. Market participants keep their focus on consumer prices due later, with estimates pointing to a yearly rise of 1.6%, matching June’s print. In the opinion of Lee Hardman, Currency Analyst at BTMU, “The positive impact of higher US yields upon the US dollar is not yet feeding through to placing downward pressure upon EUR/USD and GBP/USD in the near-term. Rising yields in the US combined with improving cyclical momentum in Europe is also lifting yields in both the euro-zone and UK”.

EUR/USD levels to watch

The pair is now losing 0.01% at 1.3344 facing the immediate support at 1.3188 (low Aug.2) followed by 1.3179 (MA30d) and finally 1.3164 (low Jul.23). On the upside, a breakout of 1.3391 (high Aug.9) would open the door to 1.3401 (high Aug.8) and then 1.3417 (high Jun.19).