EUR/USD leaps to highs, above 1.12 ahead of PMIs

The single currency is now retaking the positive ground vs. the dollar, sending EUR/USD to the area of daily highs near 1.1220.

EUR/USD looks to PMIs, Fedspeak

Spot is struggling to keep the bid one early in the European morning, looking to extend its positive streak for the third session in a context where the demand for the greenback seems to have picked up somewhat.

The pair has managed to bounce off recent lows in the 1.1120 area (Wednesday) although the bullish attempt seems to have run out of steam around yesterday’s peak near 1.1260, coincident with a retracement of the June-August up move.

Ahead in the session and with central banks’ activity already out of the way, flash manufacturing and services PMIs in the core euro zone will be published while ECB’s V.Constancio will chair a session on ‘Low interest rates and the implications for financial stability’ at the First ESRB Annual Conference.

Across the pond, Markit’s advanced manufacturing PMI will be the only release of note, although investors will closely follow the speeches by FOMC’s P.Harker (2017 voter, hawkish?), D.Lockhart (2018 voter, centrist) and L.Mester (voter, centrist/hawkish).

EUR/USD levels to watch

The pair is now up 0.04% at 1.1213 and a break above 1.1258 (high Sep.22) would aim for 1.1279 (resistance line off 2016 high) and finally 1.1329 (high Sep.8). On the flip side, the immediate support lines up at 1.1119 (low Sep.21) followed by 1.1043 (low Aug.5) and then 1.0950 (low Jul.25).