EUR/USD stays bid near 1.0550 ahead of Fedspeak

EUR/USD keeps its sideline theme well and sound at the beginning of the week, currently navigating the mid-1.0500s ahead of Fed speakers.

EUR/USD appears supported near 1.0510

The pair is recovering part of the ground lost on Friday in the wake of the US labour market figures for the month of December and in spite of a bid tone surrounding the buck.

EUR has also found solid demand via a stronger EUR/GBP in light of today’s sharp drop of the Sterling, all in response to growing Brexit fears.

Adding downside pressure to EUR, speculative net shorts have increased to 2-week peaks on the week to January 3, as shown by the latest CFTC report.

In the data space EMU’s Investor Confidence tracked by the Sentix index rose to 18.2 for the current month while the unemployment rate stayed put at 9.8% in the region.

Across the Atlantic, the Fed’s Labor Market Conditions Index fell to -0.3 from 2.1, ahead of the upcoming speeches by Atlanta Fed Dennis Lockhart (centrist, non voter) and Chicago Fed Charles Evans (voter, dovish).

EUR/USD levels to watch

The pair is now gaining 0.20% at 1.0554 facing the next hurdle at 1.0619 (high Jan.6) would target 1.0654 (spike Dec.30) en route to 1.0663 (55-day sma). On the other hand, the immediate support aligns at 1.0471 (20-day sma) followed by 1.0387 (low Jan.4) and finally 1.0350 (2016 low Dec.20).