EUR/USD unstoppable, eyes 1.25 ahead of ECB

• Spot quickly cleared 1.2400 handle.
• Generalized USD-selling still in play.
• German IFO, ECB meeting next on tap.

The broad-based USD sell off has given another boost to its rival currencies, sending EUR/USD well past the 1.2400 limestone on Thursday.

EUR/USD attention to data, ECB

The pair gathered extra upside traction on Wednesday after US Treasury Secretary S.Mnuchin said a weaker USD is good for trade purposes at his comments at the WEF in Davos.

Mnuchin’s comments added to the already bearish bias surrounding the greenback, always against the backdrop of permanent uncertainty around the Trump’s administration.

Ahead in the day, all eyes will be upon the ECB meeting, which is expected to keep the current monetary status quo. However, Draghi’s press conference has been growing in importance in light of, precisely, the sharp appreciation of the exchange rate in the last weeks.

Other than the ECB, the German IFO is also due followed by new home sales, initial claims and trade balance figures in the US calendar.

EUR/USD levels to watch

At the moment, the pair is up 0.32% at 1.2449 facing the next hurdle at 1.2459 (high Jan.25) seconded by 1.2512 (38.2% of 1.6040-1.0340) and finally 1.2571 (high Dec.16 2014). On the flip side, a drop below 1.2276 (10-day sma) would target 1.2165 (low Jan.18) en route to 1.2132 (21-day sma).