EUR/USD testing daily lows

Fxstreet.com (Edinburgh) - The bloc currency is extending its correction from session highs, now dragging the EUR/USD to test overnight lows around 1.3115/10.

Stronger USD weighting on EUR/USD

The greenback is recovering some ground on Tuesday adding a tad of extra selling pressure to the pair ahead of the key US data due later and President Draghi’s speech. Previously, ECB’s Coeure was talking about the likeliness of negative rates and that the central bank would be ready to implement them should the situation in the euro area requires so, but the pair remained apathetic.

EUR/USD critical levels

At the moment the pair is up 0.06% at 1.3127 and a surpass of 1.3151 (high Jun.250 would open the door to 1.3161 (low Jun.20) and finally 1.3177 (low Jun.10). On the flip side, support levels line up at 1.3109 (low Jun.25) ahead of 1.3059 (low Jun.24) and then 1.3053 (low Jun.5).

PBoC: Volatility in market liquidity is temporary

Following the People Bank of China's statement yesterday, suggesting that there is “reasonable liquidity” in the country's banking system, Ling Tao, deputy director of the PBoC’s Shanghai branch said today during a press conference that China is prepared to keep interest rates at a healthy level and that the recent volatility is temporary.
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