EUR/USD eases from 1-month tops, still well bid above mid-1.1300s post-US CPI
- EUR/USD regained positive traction for the third consecutive session on Tuesday.
- A subdued USD price action did little to influence the pair or hinder the move up.
- The USD bulls seemed rather unimpressed by hotter-than-expected US CPI figures.
The EUR/USD pair edged higher through the early North American session and refreshed one-month tops, around the 1.1380 region in the last hour, albeit quickly retreated few pips thereafter.
Following an early dip to the 1.1325 region, the pair managed to regain traction and turned positive for the third consecutive session on Tuesday. The uptick lacked any obvious fundamental catalyst and also seemed rather unaffected by weaker-than-expected German/Eurozone ZEW economic survey.
In fact, the German ZEW Economic Sentiment came in at 59.3 for the current month, a tad below consensus estimates pointing to a reading of 60. Meanwhile, the Current Situation Index also fell short of market expectations and edged higher to -80.9 from -83.1 recorded in May.
On the other hand, the US dollar struggled to capitalize on the previous day's late rebound and did little to provide any meaningful impetus to the EUR/USD pair. However, renewed concerns about worsening US-China relations and surging COVID-19 cases underpinned the greenback's relative safe-haven status.
Meanwhile, the USD bulls seemed rather unimpressed following the release of the latest US consumer inflation figures, which showed that the headline CPI rose by 0.6% in June as compared to 0.5% expected and -0.1% previous. The yearly rate matched expectations and came in at 0.6%.
It will now be interesting to see if bulls are able to maintain their dominant position or the pair once again meet with some fresh supply at higher levels as investors might be reluctant to place any aggressive bets ahead of the ECB decision on Thursday.
Technical levels to watch