EUR/USD turns positive near 1.1160 post US PCE
28.01.2022, 13:55

EUR/USD turns positive near 1.1160 post US PCE

  • EUR/USD manages to rebound from 2022 lows.
  • US Core PCE rose 4.9% YoY in December, more than estimated.
  • US final Consumer Sentiment is due next in the docket.

After bottoming out inf the 1.1120 region, or new YTD lows, EUR/USD regains some composure and returns to the positive territory near 1.1160 at the end of the week.

EUR/USD looks contained near 1.1100

EUR/USD now reverses part of the recent intense selloff and regains the 1.1150/60 band on the back of the knee-jerk in the greenback.

Indeed, the US Dollar Index (DXY) trims earlier gains along with the loss of upside momentum in yields in the short end of the curve, which came under pressure after hitting 2-year peaks near 1.23%.

The pullback in the dollar came after US inflation figures measured by the Core PCE rose 4.9% YoY in December, more than initially estimated, while the headline PCE gained 5.8% from a year earlier. Additionally, Personal Income expanded 0.3% MoM in the same period and Personal Spending contracted 0.6% MoM.

Later in the session, the final Consumer Sentiment print for the month of January will close the weekly calendar.

EUR/USD levels to watch

So far, spot is up 0.10% at 1.1156 and faces the next up barrier at 1.1308 (55-day SMA) seconded by 1.1369 (high Jan.20) and finally 1.1450 (100-day SMA). On the other hand, a break below 1.1121 (2022 low Jan.28) would target 1.1100 (round level) en route to 1.1000 (psychological level).

 

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