EUR/USD fades the spike to 1.1190, Fedspeak on sight

The bid tone around the single currency stays unchanged early in the European after noon, with EUR/USD now surrendering some gains and returning to the 1.1170 area.

EUR/USD upside halted near 1.1190

The ongoing upside in spot continues to be bolstered by the renewed offered bias around the greenback, with the US Dollar Index putting the 97.00 key support under the test.

Initial auspicious releases from advanced manufacturing PMIs for the month of June in Euroland gave some support to EUR earlier in the session and helped the pair to advance near the key barrier at 1.1200 the figure, albeit running out of steam later.

Ahead in the session, US flash manufacturing and services PMI are due along with new home sales and speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish) and J.Powell (permanent voter, centrist).

Recall that earlier in the week NY Fed and permanent voter W.Dudley showed optimism regarding inflation, seeing prices picking up pace along with wages in response to a tighter labour market. However, subsequent comments by Chicago Fed C.Evans (voter, dovish) argued that another rate hike could wait until December.

Further news around EUR showed futures markets could be pointing to a correction lower in the near term, while German FinMin W.Schaeuble said he prefers a more moderate policy from the ECB.

EUR/USD levels to watch

At the moment, the pair is up 0.17% at 1.1171 facing the next up barrier at 1.1202 (20-day sma) seconded by 1.1296 (2017 high Jun.14) and finally 1.1300 (high Nov.9). On the other hand, a breakdown of 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).