EUR/USD: Positive stance with the 1.10 level in sight

EUR/USD is trading near the daily high at 1.0981 ahead of the US opening and after bottoming for the day at 1.0918. EU inflation contracted by more than anticipated in April, printing 0.3% YoY. Later today, the FOMC’s Minutes will be eyed, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The EU published April inflation data, which came in worse than anticipated. The annual CPI resulted in 0.3%, below the previous 0.4%. Core annual inflation was 0.7%, also below the previous 0.8%.” 

“The FOMC will release the Minutes of its latest meeting. No surprises are expected from the document, although investors will be looking for hints on future monetary policy decisions.”

“Technical readings in the 4-hour chart suggest that the EUR/USD pair could extend its advance, as it keeps developing above all of its moving averages, with the 20 SMA heading firmly north above the larger ones.”