EUR/USD parked around 1.1170 ahead of key data

• EUR/USD remains sidelined in the 1.1160 region.
• Spot keeps the topside after the Fed rate cut.
• EMU advanced CPI, GDP figures next on tap.

The single currency keeps the bid tone intact in the second half of the week, motivating EUR/USD to remain sidelined in the upper end of the range around 1.1160.

EUR/USD bid after FOMC, loos to data now

The pair is up for the fourth consecutive session so far on Thursday, managing to regain extra upside pressure following Wednesday’s interest rate cut by the Federal Reserve.

Indeed, the renewed and persistent selling bias around the buck is sustaining the moderate recovery in spot to levels close to monthly peaks in the 1.1160/65 band. The selling mood around the Greenback picked up extra pace on Wednesday despite the Fed reduced the FFTR to 1.50%-175%, as largely anticipated, and entered a period of wait-and-see mode.

Later in the euro docket, the focus of attention will be on the advanced readings for GDP and inflation figures in the broader Euroland.

Across the pond, Challenger Job Cuts is next on the calendar followed by inflation figures tracked by the Core PCE, Initial Claims, Personal Income/Spending and the Chicago PMI.

What to look for around EUR

EUR has managed to return to the upper bound of the monthly range, always on the back of unabated selling pressure in the buck. Despite the October rally in spot has been exclusively sponsored by weakness in the Dollar, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In addition, the possibility that the German economy could slip into recession in Q3 remains a palpable risk for the outlook and is expected to weigh on EUR in the short/medium term horizon.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1167 and faces the next up barrier at 1.1171 (monthly high Oct.18) seconded by 1.1186 (61.8% Fibo of the 2017-2018 rally) and finally 1.1197 (200-day SMA). On the downside, a breakdown of 1.1072 (low Oct.25) would target 1.1042 (55-day SMA) en route to 1.0925 (low Sep.3).