EUR/USD muted on German CPI, around 1.0580

The single currency remains entrenched in the negative ground today, with EUR/USD now hovering over the area of daily lows in the 1.0585/80 band.

EUR/USD offered post-data

Spot keeps the offered note unchanged after German inflation figures tracked by the CPI showed consumer prices are expected to rise at an annualized 0.8% during the current month and 0.1% on a monthly basis, matching forecasts.

Further data saw prices measured by the broader HICP expected to gain 0.7% on a year to November and to come in flat inter-month, both prints missing expectations.

The pair is extending the daily drop after three consecutive retracements, fully fading yesterday’s spike to the boundaries of 1.0700 the figure although finding weekly support in the 1.0560 region so far.

On  Monday, President M.Draghi failed to ignite some durable reaction in spot following his testimony before the European Parliament on Monday, as he emphasized the resilience of the euro area particularly after the Brexit vote, while he argued as well that the ECB could assess its current conditions at the December meeting.

Later in the NA session, advanced Q3 GDP figures are due followed by Consumer Confidence tracked by the Conference Board, the S&P Case-Shiller index, inflation figures gauged by the PCE during Q3 (Fed’s favorite) and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral).

EUR/USD levels to watch

The pair is now down 0.28% at 1.0584 facing the initial support at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the other hand, a break above 1.0685 (high Nov.28) would target 1.0763 (high Nov.16) en route to 1.0826 (high Nov.14).