- EUR/USD looks undefined around the 0.9700 zone on Wednesday.
- Industrial production in the Eurozone surprises on the rise in August.
- Ahead: US producer price index and FOMC minutes.
Buying interest faded around the euro, stripping EUR/USD of its gains and taking it back to the 0.9700 zone. It also weighed the decline of almost a hundred pips in the EUR/GBP.
EUR/USD focuses on the ECB, US inflation and the FOMC
EUR/USD hits some hurdles after Tuesday’s humble advance, despite renewed dollar weakness and an improved mood in financial markets. While Treasury yields are advancing on Wednesday, so are European benchmarks. Germany’s 10-year bond was as high as 2.39%, a new high since August 2011.
On Wednesday, the president of the European Central Bank, Christine Lagarde, will participate in the meeting of finance ministers and governors of central banks of the G20 and in the annual assembly of members of the IIF of 2022. Regarding data from the region, it is learned that the Industrial production of the Eurozone grew 2.5% year-on-year in the month of August.
Across the pond, at 12:30 GMT the Producer Price Index will be released and on Thursday it will be the turn of the Consumer Price Index. On Wednesday in the second half of the American session the Fed will release the minutes of the last FOMC meeting.
EUR/USD levels to watch
At the moment the pair is losing 0.02% at 0.9704 and a break of the monthly low at 0.9669 (Oct 11) would target 0.9535 (2022 low Sep 28) on the way to 0.9411 (weekly low Jun 17). 2002). To the upside, the first hurdle is at 0.9999 (weekly high Oct 4), followed by 1.0050 (weekly high Sep 20) and finally 1.0197 (monthly high Sep 12).
Source: Fx Street
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