EUR/USD drops to lows near 1.0950 ahead of CPI

The single currency is now picking up extra downside pace, relegating EUR/USD to the region of daily lows in the mid-1.0900s.

EUR/USD capped by 1.10

The upside momentum around the pair seems to have run out of steam at the beginning of the week after an unsuccessful attempt to re-visit the psychological barrier at 1.1000 last Friday.

A pick up in the risk off trade sentiment following another Clinton-FBI round has brought in some oxygen for the greenback early on Monday, prompting spot to fade part of last week’s significant advance.

Later in the session, EUR will remain in centre stage in light of the release of October’s advanced CPI figures in the euro bloc and flash Q3 GDP. Previously, German Retail Sales have contracted at a monthly 1.4% in September, missing initial estimates.

On the US data front, inflation figures gauged by the PCE are due ahead of September’s Personal Income/Spending.

Further data around EUR saw speculative net shorts advancing to the highest level since late January during the week ended on October 25, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now retreating 0.28% at 1.0957 and a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015). On the other hand, the next hurdle aligns at 1.0995 (high Oct.28) followed by 1.1018 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20).