EURUSD Continues on Bearish Course Owing To Light European Calendar

EURUSD has continued to move on a steep for last three weeks and a majority of this downtrend momentum can be contributed to light European economic calendar albeit increasing strength of US dollar. The greenback remains unabatedly the strongest currency across the board and has resumed its advance post-US opening. US Treasury yields regained the upside after US President Trump decided to pull the US out from the Iranian deal and increase sanctions on the country, with the 10-year note spending the day hovering around 3.0% and the 2-year note yield reaching a new high since 2008 at 2.53%.

EURUSD Weak

The EUR/USD pair fell intraday to 1.1822 and peaked at 1.1897 early US session, after the only piece of relevant data missed expectations, as US PPI advanced less than anticipated in April any way up 2.6% YoY, down from the previous 3.0%, while the core yearly figure resulted at 2.3% from the previous 2.7% and the expected 2.4%. Traders are now waiting for US April CPI which is scheduled to release later today and is expected to remain above 2.0% while this is hardly a game changer for the Fed, a better than expected reading will likely boost the already bullish greenback.

In European market, ECB is scheduled to release an Economic Bulletin later today, Finland & Switzerland markets are closed for the day owing to Ascension Day celebrations. While US has opted out of Nuclear deal with Iran European allies such as France, Germany and Britain have said they plan to remain in the deal and will be holding a high-level meeting with Iranian leaders on how the agreement can be salvaged.  At the same time tensions between Israel and Iran are at a fever pitch, and any confrontation between the two could shake up the markets. Economic Calendar in European market remains light for the day. Expected Support and resistance for the pair are at 1.1800 / 1.1775 and 1.1900 / 1.1940 respectively.