Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD extends losses, May lows in sight
FXStreet (Córdoba) – EUR/USD broke below the 1.0850/55 support area and hit fresh 8-week lows as the dollar benefited from US CPI and housing data.
US data and Fed liftoff expectations
US CPI rose 0.3% in June and 0.1% year-over-year, while excluding food and energy, the so-called core prices rose 0.2% MoM and 1.8% YoY, matching forecasts. CPI data reinforced Fed Chair Janet Yellen pointed to a rate hike this year as inflation moves gradually back to the 2.0% target.
The euro on the other hand, has remained immune to latest developments which are paving the way for a third Greek bailout. Today, the Bundestag approved government negotiations for a new Greek package while the European Stability Mechanism (ESM) formally mandates institutions to negotiate a Memorandum of Understanding (MoU) for a new programme.
EUR/USD bottomed out at 1.0845 and it was last trading around 1.0850, recording a 0.20% loss on the day, the third in a row. The euro is also on track to close the week lower against the greenback after two weekly gains.
EUR/USD key levels
On the downside, next support is seen at 1.0818, May monthly low, ahead of 1.0800 (psychological levels). On the flip side, immediate resistances could be found at 1.0906 (Jul 17 high) and 1.0962 (Jul 16 high).
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Source: FXStreet
