EUR/USD Drops Further on US CPI

EUR/USD Drops Further on US CPI

17 May 2016, 15:01
Roberto Jacobs

EUR/USD Drops Further on US CPI

The shared currency is now depreciating further vs. the dollar, dragging EUR/USD to fresh lows near the 1.1300 handle.

EUR/USD weaker post US releases

Spot has accelerated its decline after US CPI has come in above expectations during April, with headline CPI advancing 0.4% MoM vs. 0.3% forecasted. Stripping out Food and Energy costs, prices have matched initial estimates at 0.2% MoM. Over the last twelve month, headline CPI has gained 1.1%, up from March’s 0.9%.

Further releases saw Building Permits and Housing Starts coming in mixed at 1.116M and 1.172M, respectively during the last month.

Later in the session, Industrial Production, Capacity Utilization and speeches by FOMC’s Lockhart, Williams and Kaplan.

EUR/USD levels to watch

The pair is now losing 0.14% at 1.1305 facing the immediate support at 1.1281 (low May 13) followed by 1.1213 (low Apr.25) and finally 1.1142 (low Mar.24). On the other hand, a break above 1.1448 (high May 11) would target 1.1615 (2016 high May 3) en route to 1.1713 (high Aug.24 2015).


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