EUR/USD firmer, eyes 1.0750 on FOMC hangover

The single currency keeps the upbeat mood on Thursday, with EUR/USD now navigating the upper end of the range near 1.0750 ahead of the opening bell in Euroland.

EUR/USD bid post-Yellen

The USD sell-off following the neutral stance from the FOMC at its meeting on Wednesday pushed spot well above the critical barrier at 1.0700 the figure, although the upside has so far run out of steam around 1.0740.

Despite hiking rates by 25 bp as widely expected, the Committee failed to strike a more hawkish tone on Wednesday, leaving USD-bulls empty-handed and triggering a deep pullback that sent the US Dollar Index to test fresh 5-week lows near 100.50.

Adding to the optimism around EUR, the Dutch elections saw center-right PM Mark Rutte finishing ahead of Party for Freedom’s Geert Wilders, alleviating some concerns over the pick up of populist and anti-immigrant sentiment in Europe. The elections in the Netherlands could be considered as a bellwether of the upcoming elections in France, Germany and probably Italy.

On the data front, February’s final CPI figures in the euro region are unlikely to attract any attention, while Initial Claims, the Philly Fed index, Housing Starts and Building Permits are all due across the pond.

EUR/USD levels to watch

At the moment the pair is advancing 0.08% at 1.0740 facing the next up barrier at 1.0829 (2017 high Feb.2) ahead of 1.0873 (high Dec.8 2016) and then 1.0898 (200-day sma). On the downside, a breach of 1.0652 (100-day sma) would target 1.0629 (55-day sma) en route to 1.0599 (20-day sma).