Forex: EUR/USD retraces losses on US session

After printing the daily low at 1.2912 by the time that US data was being published, the EUR/USD pulled back and retraced its losses at 1.2961 opening price. The upside is finding some resistance at 1.2970 as of writing.

The US current account deficit narrowed from $-112.4B to $-110.4B in Q4, beating the $-112.80B consensus. However, Q3 data was revised much higher from $107.51.

In the week ending at March 10 week, initial jobless claims dropped from 342K (revised from 340K) to 332K, against a market consensus pointing to 350K. Continuing claims rose from 3.113M to 3.024M, better than the expected 3.100M.

As expected, the US Producer Price Index rose 0.7% (previously at 0.2%) (MoM) and 1.7% (previously at 1.4%) (YoY) in February. Excluding food and energy, data eased from 1.8% to 1.7% (YoY), with a monthly rise of 0.2%.

"The EUR/USD currency pair continues moving downwards. I think today the price may reach a new minimum at the level of 1.2920 and then start growing up towards the level of 1.3030", wrote Roboforex.com analyst Igor Sayadov, pointing to a new descending movement towards the target at 1.2880 before a bounce back to 1.3195.