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EUR/USD Recovery after US inflation towards 1.1090

The EUR/USD has recovered slightly in the last hour, as the greenback weakened with the response to the US inflation data. Currently, the pair is quoted on a daily basis almost unchanged near the 1.1090.

The United States (US) Bureau of Labor Statistics (BLS) announced Wednesday that the US core consumer price index remained unchanged at 2.3% in November on an annualized basis. Although this reading was in line with expectations, the dollar index fell below 97.50 at the new daily low.

The pair is unlikely to enjoy much momentum in the next few hours as the monetary policy decision of the FOMC is pending. Although investors are not expecting any further Fed interest rate cuts, an update on the economic projections for the year 2020 will be of great interest.

Also read  US dollar index retreat from week high above 99.00

When the FOMC event is over, investors focus on the meeting of the European Central Bank (ECB), which will be held for the first time under the leadership of new President Lagarde.

Technical Levels

S1 1.1072
S2 1.1049
S3 1.1036

R1 1.1109
R2 1.1122
R3 1.1145


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