EUR/USD picking up pace near 1.0440, CPI, FOMC eyed

The now softer tone around the buck is prompting EUR/USD to gather some traction and advance to daily highs around the 1.0440 area.

EUR/USD attention to data, FOMC

Spot has regained the 1.0400 handle after dropping to fresh 14-month low near 1.0340 on Tuesday, all amidst solid buying interest surrounding the greenback during the first half of the week.

Later in the session, Services PMIs in Euroland are due ahead of the more relevant inflation figures tracked by the CPI in the region during December. The results have regained some attention in light of yesterday’s higher-than-expected CPI in Germany, although they should not change the ECB view that the up move in consumer prices lack of sustainability.

Across the pond, the Dollar will take centre stage, as the FOMC will publish its minutes from the December meeting. Market consensus expects the Committee to deliver a hawkish message, with the discussion around the projected three hikes for the current year poised to grab all the attention.

Further news for EUR showed speculative net shorts have decreased to levels last seen in late June 2016 during the week ended on December 27, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now up 0.29% at 1.0436 and a breakout of 1.0534 (high Jan.2) would target 1.0654 (spike Dec.30) en route to 1.0687 (55-day sma). On the downside, the immediate support aligns at 1.0350 (2016 low Dec.20) ahead of 1.0339 (2017 low Jan.3) and finally 1.000 (psychological level).