EUR/USD inter-markets: reticent above 1.1200

EUR/USD is extending its broader sideline theme above the 1.1200 barrier for the time being, almost isolated from news and events, as proved by yesterday’s innocuous spike to the 1.1280 following disappointing readings from US Retail Sales.

The now better tone in the greenback is weighing on the pair’s daily decline, with the US Dollar Index flirting with session tops in the mid-95.00s. US-GE yields spread differentials are performing in a mixed fashion, supporting the buck in the 10-year benchmark albeit losing momentum in the shorter-end of the curve.

Fed Funds future prices have bounced off daily lows and are now suggesting the probability of a rate hike by the Fed at next week’s meeting at 12% and almost 40% for the month of December.

That said, EUR/USD looks well poised to prolong its rangebound so far limited by the resistance line off 2016 top today at 1.1294 and the important support at 1.1194, where sits the 2014-2016 uptrend line. In the middle, the 20-/100-d sma offers some transitory support around 1.1210/00.