EUR/USD Maintains Gains Above 1.1200 Ahead of Key Data Releases

In the early European session, EUR/USD is holding onto its gains above the 1.1200 level. The pair experienced a slight pullback due to a modest uptick in the US Dollar and Treasury bond yields. Investors are adopting a cautious stance as they await mid-tier data releases from both the EU and the US.

On Wednesday, EUR/USD saw a minor decline, touching a low of 1.1173, but managed to close the day just below the 1.1200 mark. European data provided some support, with the Eurozone confirming a 5.5% year-on-year increase in the June Harmonized Index of Consumer Prices (HICP), meeting preliminary estimates. Additionally, the European Union's annual inflation rate decreased to 6.4% in June from 7.1% in May.

Despite lackluster US macroeconomic figures, financial markets remained optimistic during the American session. June Building Permits declined by 3.7%, and Housing Starts dropped by 8% in the same month.

The US Dollar gained momentum after Wall Street's opening, even as US indexes continued their upward trend. The Dow Jones Industrial Average registered its seventh consecutive session of gains, while the Nasdaq Composite and the S&P 500 marked their third straight day of increases.

Looking ahead, the macroeconomic calendar will feature important data releases, including the June German Producer Price Index (PPI), Eurozone May Current Account, and July Consumer Confidence. In the US, weekly unemployment figures and June Existing Home Sales data will also be published on Thursday. Traders will closely monitor these data points to gauge potential impacts on EUR/USD's trajectory.


TurnAround Point: 1.1180

Our preference:

Long positions above 1.1180 with targets at 1.1235 & 1.1255 in extension.