EUR/USD climbs to session tops near 1.1780 ahead of FOMC

• The pair clinches new daily highs in the boundaries of 1.1780.
• US Producer Prices rose more than expected 0.5% MoM in May.
• US FOMC meeting, updated ‘dots-plot’ next of relevance.

EUR/USD is now gathering extra steam and is testing the upper end of the recent range in the vicinity of the 1.1780 region.

EUR/USD bid despite US data

Spot is picking up extra pace while fresh selling pressure is hitting the buck despite US Producer Prices surprised to the upside during last month.

In fact, Producer Prices rose at a monthly 0.5% and 3.1% over the last twelve months. In addition, Core prices gained 0.3% inter-month and 2.4% on an annualized basis.

Looking ahead, market participants will closely follow the Committee’s view on the prospects of further tightening (dots plot) by the Federal Reserve in the next months at today’s FOMC meeting, while a 25 bp rate hike appears already priced in.

EUR/USD levels to watch

At the moment, the pair is up 0.27% at 1.1777 and a breakout of 1.1840 (high Jun.7) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14). On the flip side, initial contention emerges at 1.1726 (low Jun.8) seconded by 1.1718 (low Dec.12 2017) and finally 1.1617 (low Jun.1).