• EUR/USD moves higher at tests daily peaks near 1.1340.
  • The neutral/offered bias persists around the greenback.
  • ECB-speak, US inflation next of relevance in today’s docket.

The upbeat mood around the shared currency stays unabated so far on Wednesday and is lifting EUR/USD to the area of fresh tops around 1.1340.

EUR/USD now focused on ECB, data

The pair is advancing for the second session in a row on Wednesday, navigating weekly highs in the 1.1340 region, coincident with a Fibo retracement of the 2019 decline.

Spot moves higher on the back of the continuation of the downside pressure in the greenback, always with rising speculations of a rate cut by the Fed at some point later in the year behind the leg lower. Friday’s poor US Payrolls and yesterday’s below-consensus producer prices have recently exacerbated this view.

Today’s calendar in Euroland highlights the speeches by ECB’s Mario Dragui, Luis De Guindos and Benoit Coeure at the 8th ECB Conference on central, eastern and south-eastern European countries (CESEE), in Frankfurt.

Across the pond, all eyes will be upon the release of May’s US inflation figures tracked by the CPI.

What to look for around EUR

The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with developments from the trade front including the US, China, the EU and Mexico. On the political front, Italian politics is expected to remain a source of uncertainty and volatility, with the centre of the debate on the country’s opposition to EU fiscal rules. EUR, however, is expected to remain under scrutiny amidst the renewed dovish stance from the ECB and the ongoing slowdown in the region.

EUR/USD levels to watch

At the moment, the pair is gaining 0.09% at 1.1336 and a breakout of 1.1347 (high Jun.7) would target 1.1364 (200-day SMA) en route to 1.1448 (monthly high Mar.20). On the other hand, the next support lines up at 1.1272 (100-day SMA) followed by 1.1218 (55-day SMA) and finally 1.1200 (low Jun.6).