EUR/USD still finding sellers at 1.1220-25
Earlier this morning, we saw some modest USD selling, but dip buyers are never far away and the greenback stays bid amid a spectrum of currencies which do not size up in terms of fundamental factors behind it. This comes in spite of some softer US data seen yesterday, where both the consumer spending and industrial production numbers proved disappointing.
However, at some point, this may start to come back in focus. Against the EUR however is the prospect of the upcoming European elections next week, so there is plenty of appetite to keep selling the EUR, though we could see a little push higher as long as the 1.1175-80 area holds on the downside.
In recent sessions, EUR/GBP buying has been strong as a function of fresh Brexit fears hurting the GBP, so if this eases off, we may or may not see the EUR/USD support loosen up.
Lots of ifs and buts in the market at the moment, so it is not hard to see why traders are struggling to commit to strong direction in the EUR. Some of the recent data out of Europe has shown stabilisation, in terms of growth and inflation, though there are plenty of headwinds ahead which could spell trouble for the single currency down the road.
This morning we saw March trade showing a better than expected surplus of Eur22.5bln vs Eur20bln expected. There was little reaction to this though as politics and the USD focus dominate this week.