EUR/USD deflates from tops near 1.0660, ECB eyed

The buying interest around the shared currency seems to have run out of steam for the time being, prompting EUR/USD to abandon the area of daily highs near 1.0660.

EUR/USD looks to ECB, Fedspeak

After briefly surpassing 1.0660 in early trade, spot has now receded some ground as the demand for the greenback seems to have picked up pace once again after the Trump-led sell-off sparked on Wednesday evening.

Recall that at his first press conference since the US elections, president-elect Donald Trump failed to give markets further details on his future economic policy, disappointing investors’ expectations.

On the data front, EMU’s Industrial Production has expanded more than expected in November, up 1.5% inter-month and 3.2% YoY. Later in Europe, the ECB is expected to publish its Accounts of the December meeting.

In the US, Export/Import Prices are due followed by Initial Claims. In addition, USD will keep in centre stage as Chicago Fed C.Evans (voter, dovish), Philly Fed P.Harker (voter, hawkish), Atlanta Fed D.Lockhart (centrist), St.Louis Fed J.Bullard (centrist) and Dallas Fed R.Kaplan (voter, hawkish) are all due to speak later. Chairwoman J.Yellen will also hold a speech although it won’t be on monetary policy.

EUR/USD levels to watch

The pair is now gaining 0.39% at 1.0624 facing the next hurdle at 1.0665 (high Jan.12) ahead of 1.0671 (high Dec.14) and finally 1.0686 (high Nov.28). On the other hand, a breakdown of 1.0508 (low Jan.9) would target 1.0487 (20-day sma) en route to 1.0452 (low Jan.11).