EUR/USD drops further towards 1.1120

The selling mood is now hurting the shared currency and dragging EUR/USD to print fresh lows in the 1.1120 area.

EUR/USD capped near 1.1200

The pair met further downside pressure during the NA session following a recovery in the US dollar in spite of the NAHB index and the Empire State gauge both coming in below market expectations.

The greenback seems to have found support after comments by Philly Fed President P.Harker, who still sees low inflation figures during Q1 although he stressed that policy could turn more aggressive in case headwinds fade fast. He added that still persists downside risk to economic outlook, while the jobless rate could grind lower towards 4.7% by year-end.

EUR/USD levels to watch

The pair is now retreating 0.15% at 1.1136 and a breach of 1.1084 (low Feb.8) would target 1.1078 (20-day sma) and finally 1.1026 (200-day sma). On the flip side, the next hurdle is located at 1.1378 (high Feb.11) ahead of 1.1460 (monthly high Sep.18) and then 1.1496 (monthly high Oct.15).

USD/JPY consolidates near lows sub-114.00

USD/JPY has entered a consolidation phase over the last hours after the latest pullback was contained by the 113.60/65 area.
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GBP/USD extends decline below 1.4300

GBP/USD has continued to move lower at the beginning of the New York session, leaving several support levels behind, as the pound continues to underperform across the board.
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