EUR/USD drops further ahead of US CPI

The shared currency is accelerating the downside on Thursday, with EUR/USD now plummeting to the 1.1170 area.

EUR/USD weaker ahead of data

EUR is following the Sterling on its way south today as ‘Brexit’ fear continue to weigh on sentiment and the buying interest seems to have returned to the greenback.

Yields in the German Bunds are not helping either, trading in the red territory against the recovery of US 10-year and 5-year yields.

Spot is poised to remain under pressure in light of the inflation figures in the US economy, seconded by Initial Claims and the Philly Fed Manufacturing Survey.

EUR/USD levels to watch

The pair is now losing 0.75% at 1.1176 and a break below 1.1164 (up trend from March low) would expose 1.1101 (200-day sma) and then 1.1096 (low May 30). On the other hand, the initial up barrier aligns at 1.1312 (55-day sma) ahead of 1.1417 (high Jun.8) and finally 1.1448 (high May 11).