EUR/USD unmotivated, parked above 1.1200

Not much happening around the single currency today, with EUR/USD meandering above the 1.1200 handle in a steady trade and empty docket.

EUR/USD focus on risk trends

The pair keeps the upside intact so far today, extending the rebound from last Friday’s troughs near 1.1160 although with gains capped around the 1.1230/40 band.

EUR stays underpinned by Sunday’s results from the first round of French legislative elections. According to latest news, President Macron’s ‘En Marche’ party could get around 415 seats out of 455 seats. The second round is scheduled for Sunday 18.

In the meantime, the greenback keeps the steady performance today, posting marginal losses albeit still above the key 97.00 handle.

Looking ahead, the FOMC meeting will take centre stage on Wednesday, with consensus practically pricing in a 25 bp rate hike. According to CME Group’s FedWatch tool, the probability of higher rates is at just below 96% based on Fed Funds futures prices.

In light of last week’s ECB gathering, Board member B.Coeure said earlier in the session that inflation in the region stays on the right direction, although he reiterated that tapering is a premature idea for the time being.

EUR/USD levels to watch

At the moment, the pair is up 0.17% at 1.1214 and a breakout of 1.1240 (high Jun.9) would target 1.1284 (2017 high Jun.5) en route to 1.1300 (high Nov.9 2016). On the flip side, the next support is located at 1.1165 (low Jun.9) followed by 1.1108 (low May 30) and finally 1.1073 (76.4% Fibo of 1.1300-1.0339).