EUR/USD around 1.0700 on EMU data

EUR/USD keeps the trade around the 1.0700 handle following the release of EMU’s inflation figures.

EUR/USD sticks to the positive ground

The pair is posting moderate gains on Tuesday backed by a generalized offered bias around the buck and auspicious results from the euro area.

In fact, advanced EMU’s inflation figures for the month of January have surprised to the upside today, with headline consumer prices seen rising at an annualized 1.8% and Core prices are expected to have gained 0.9%.

Additional upbeat data showed preliminary Q4 GDP figures expect the economy to expand 0.5% inter-quarter and 1.8% on a yearly basis, while the unemployment rate has ticked lower to 9.6% during December.

EUR remains supported by speculative positioning, as net shorts have been trimmed to levels last seen in late May during the week ended on January 24, as per the latest CFTC report.

In the meantime, spot keeps the positive territory for the time being, struggling to consolidate the recent breakout of the 1.0700 handle and with daily gains limited around 1.0720.

EUR/USD levels to watch

The pair is now gaining 0.14% at 1.0710 facing the next up barrier at 1.0740 (high Jan.30) followed by 1.0775 (high Jan.24) and finally 1.0798 (high Dec.5). On the other hand, a breakdown of 1.0647 (20-day sma) would target 1.0617 (low Jan.30) en route to 1.0589 (55-day sma).