EURUSD: Supply caps recovery just below 1.1200, US data eyed

With all the chaos coming to a halt and European markets looking to stabilise, EUR/USD’s recovery fails to garner further momentum as consequences of a Brexit win continue to dampen the sentiment around the EUR bulls.

At the moment, the main currency pair is seen defending the 1.11 barrier, having failed several recovery attempts near 1.1180-1.1190 zone. Although the downside now remains capped following UK PM Cameron’s reassurance that the UK economy remains fundamentally strong.

Markets have outrightly ignored the economic releases from the Euroland, with the significant being German Ifo surveys, as Brexit-related news flow continue to dominate markets. Germany IFO business climate for June coming in at 108.7 versus 107.5 expected.

Next in focus now remains the US durable goods data, with markets closely watching whether the US data adds to the strong gains seen in the greenback against its major peers, following the Brexit fallout.