EUR/USD waits for the G-20 around 1.1380

• EUR/USD keeps the bid note in the 1.1370/80 band.
• EMU flash Core CPI rose more than expected during June.
• US PCE surprised to the downside during last month.

The buying interest around the European currency remains unchanged so far on Friday, lifting EUR/USD to the upper end of the recent range just below 1.14 the figure.

EUR/USD now looks to the G-20

The pair keeps the daily range unchanged in the upper-1.1300s as market participants get ready for the imminent G-20 event, where the centre of attention will be once again the Trump-Xi meeting.

EUR stays supported today in response to better than expected preliminary inflation figures in Euroland for the month of month. In the US docket, the greenback failed to gather extra pace after prices tracked by the Core PCE rose 0.2% MoM and 1.6% on a year to June. In addition, Personal Income expanded at a monthly 0.5% and Personal Spending rose 0.4% inter-month.

In the meantime, the pair has so far met decent support in the vicinity of the key 200-day SMA in the mid-1.1300s following Tuesday’s bearish ‘outside day’. Trade jitters should continue to dictate the mood in the risk-appetite trends in the very near term, although investors should slowly start to adjust their views to the recent dovish twist from the ECB, keeping the demand for EUR somewhat subdued.

Later in the NA session, the final June Consumer Sentiment gauged by the U-Mich index will be released.

What to look for around EUR

The renewed dovish stance from the ECB and USD-dynamics should dictate the price action around the pair in the near term, helped at the same time by the broad risk-appetite trends and trade tensions. Further out, the slowdown in the region looks unremitting and reinforces at the same time the current dovish attitude of the central bank. On the political front, Italian politics is expected to remain a source of uncertainty and volatility for EUR, with the centre of the debate gyrating around the country’s opposition to EU fiscal rules as well as the challenging tone from LN’s M.Salvini.

EUR/USD levels to watch

At the moment, the pair is gaining 0.11% at 1.1381 and a break above 1.1412 (high Jun.25) would target 1.1419 (high Feb.28) en route to 1.1448 (monthly high Mar.20). On the other hand, the next down barrier emerges at 1.1344 (low Jun.25) followed by 1.1260 (100-day SMA) and finally 1.1181 (low Jun.18).