EUR/USD clings to 1.1200 on PMIs, Fedspeak eyed

The shared currency is now treading water around the 1.1200 handle vs. the greenback, with EUR/USD fading the initial spike to the 1.1220 area.

EUR/USD now focuses on Fedspeak

Spot lost some upside momentum following mixed reading from German and EMU’s preliminary manufacturing and services PMIs for the month of September, although it manages to keep the trade in the 1.1200 neighbourhood for the time being.

Later in the NA session, speeches by Philly Fed P.Harker (2017 voter, hawkish?), Atlanta Fed D.Lockhart (2018 voter, centrist) and Cleveland Fed L.Mester (voter, centrist/hawkish) will grab investors’ attention following the recent steady stance by the FOMC at Wednesday’s meeting, all seconded by the manufacturing PMI tracked by Markit for the current month.

It is worth mentioning that L.Mester was one of the triple-dissenters at the last FOMC meeting, advocating for a rate hike along with (dove-turned-hawk?) E.Rosengren and KC Chief E.George.

EUR/USD levels to watch

The pair is now losing 0.04% at 1.1204 facing the next support at 1.1119 (low Sep.21) followed by 1.1043 (low Aug.5) and then 1.0950 (low Jul.25). On the other hand, 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).