EUR/USD remains choppy around 1.1360

• EUR/USD keeps the narrow range around the 1.1360 region.
• Trade concerns back to the fore on Trump comments.
• German advanced CPI seen above estimates this month.

The shared currency keeps exchanging up-and-downs in the second half of the week, with EUR/USD always parked in the 1.1360 area.

EUR/USD apathetic on US, German docket, looks to trade, G-20

Spot is once again charting a ‘doji-like’ candle, showing the lack of direction in the global markets and the swelling cautious trade ahead of the key G-20 event in Japan starting tomorrow.

EUR/USD managed to test highs near 1.1380 earlier in the session after President Trump hinted at the likeliness of further tariffs on Chinese products, triggering a sudden correction lower in the buck and US yields.

The pair showed no reaction despite preliminary inflation figures in Germany showed consumer prices are expected to rise at an annualized 1.6% on a year to June and 0.3% on a monthly basis, both prints surprising to the upside.

Releases across the pond noted the final revision of US GDP now sees the economy to have expanded 3.1% YoY during the January-March period, although the GDP Price Index rose less than expected at a quarterly 0.6%.

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 retreating 0.02% at 1.1366 and faces the next down barrier at 1.1344 (low Jun.25) followed by 1.1259 (100-day SMA) and finally 1.1181 (low Jun.18). On the flip side, a break above 1.1412 (high Jun.25) would target 1.1419 (high Feb.28) en route to 1.1448 (monthly high Mar.20).