EUR/USD returns to 1.20 on EMU data, FOMC eyed

• The pair fades the earlier spike to the 1.2030 region.
• USD bounces off lows and hovers over 92.40.
• EMU’s advanced Q1 GDP figures matched initial estimates.

After testing fresh daily tops in the 1.2030/40 band, EUR/USD has now receded to the 1.2000 neighbourhood as the greenback managed to bounce off session lows.

EUR/USD attention shifts to FOMC, ADP

The pair remains under pressure today, retracing the earlier spike to the 1.2030/40 band amidst a rebound in the buck and rising US yields.

In fact, the US Dollar Index rebounds from daily highs near 92.20 while US-10 year yields are approaching the psychological barrier at 3.0% the figure.

Data wise in Euroland, preliminary GDP figures showed the economy of the region is expected to expand at an annualized 2.5% and 0.4% inter-quarter during the January-March period, falling in line with prior surveys. In addition, unemployment in the euro bloc stayed at 8.5% in March.

Later in the session, US ADP report is seen at 200K during April while at the FOMC meeting the Committee is expected to leave rates on hold this time and opening the door for another hike at the June event.

EUR/USD levels to watch

At the moment, the pair is gaining 0.07% at 1.2001 facing the next hurdle at 1.2032 (high May 2) seconded by 1.2155 (10-day sma) and finally 1.2210 (high Apr.26). On the flip side, a break below 1.1982 (low May 1) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017).