EUR/USD clings to gains near 1.2330, data, Powell eyed
- Spot clinches its second session in a row with gains around 1.2330.
- USD offered early morning with DXY still below 90.00.
- EMU data, German flash CPI, Powell’s testimony all due later.
The shared currency is extending the upbeat mood during the first half of the week and is now lifting EUR/USD to the vicinity of the 1.2330 area, up smalls for the day.
EUR/USD attention to data, Powell
Spot is advancing for the second consecutive session so far on Tuesday, confirming the positive start of the week and consolidating the trade above the key 1.2300 handle.
The pair’s upside remains intact against the backdrop of softer yields in the key US 10-year reference, which have retreated to the 2.86% region and stay depressed ahead of the Humphrey-Hawking testimony by Chief J.Powell later today.
In the data space, EUR should focus on the advanced inflation figures in Germany fore the month of February, seconded by several gauges of confidence in the region. Across the pond, the above-mentioned congressional testimony by Fed’s J.Powell will be the salient event this week apart from January’s Durable Goods Orders, Trade Balance figures and the CB’s Consumer Confidence.
In the broader EUR picture, risk appetite trends, German politics and the upcoming Italian elections should keeps investors entertained, while Chairman Powell is expected to deliver a cautious message emphasizing policy continuity.
EUR/USD levels to watch
At the moment, the pair is gaining 0.07% at 1.2326 and a break above 1.2361 (21-day sma) would target 1.2366 (10-day sma) en route to 1.2537 (high Jan.25). On the other hand, the immediate support emerges at 1.2260 (low Feb.22) followed by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).