EUR/USD around 1.1780 post-German CPI

The bid tone around the European currency remains intact today, with EUR/USD hovering over the 1.1770/80 band in the wake of German flash CPI figures.

EUR/USD bid on data, now looks to Fedspeak

Spot remains bid in the second half of the week despite advanced German inflation figures tracked by the broader HICP expect consumer prices to rise at an annualized 1.8% during September, while prices are seen flat on a monthly basis, both prints missing initial forecasts.

In addition, headline prices gauged by the CPI are seen rising 1.8% over the last twelve months and 0.1% inter-month, matching consensus.

Still in the euro area, earlier publications saw EMU’s business climate surpassing estimates and September’s consumer confidence coming in at -1.2, in line with consensus.

Further out in the region, ECB’s board member P.Praet said that the ECB is not talking about exiting its QE programme, just a recalibration of the current measures, adding at the same time that the central bank aims for sustainable inflation (rather than the current transitory stance). Member Hansson said earlier that rates should stay in current low levels at least while QE is underway.

Across the pond, US trade balance figures are due followed by initial claims and the third revision of US Q2 GDP. In addition, FOMC’s members Fischer, George and Bostic will also speak.

EUR/USD levels to watch

At the moment, the pair is gaining 0.30% at 1.1782 facing the next hurdle at 1.1811 (55-day sma) followed by 1.1879 (10-day sma) and finally 1.1908 (21-day sma). On the other hand, a breakdown of 1.1662 (low Aug.17) would target 1.1555 (100-day sma) en route to 1.1329 (low Jul.6).