The dollar index fluctuates close to 94.90, having lost 0.2% within last 24 hours after weak U.S. PPI data. EURUSD is trading near 1.1620. Despite some weakening since the beginning of the European session, the pair manages to hold above the important 1.1600 level.
Bullish: Overcoming the important resistance at 1.1600, which is able to become a short-term support. Improved mood on the EM markets after a rebound from 14-month lows.
Bearish: The slowdown in Germany’s CPI is confirmed. Caution with testing local highs before the ECB comments.
Next focus on: Results of the Bank of England meeting on monetary policy at 11:00 GMT. Decisions on the rate and QE at 11:45 and the ECB’s press conference at 12:30.