EUR/USD stays depressed around 1.0630

The demand for the single currency remains subdued during the first half of the week, sending EUR/USD to test lows in the 1.0630 region.

EUR/USD muted post-US data

The pair kept the daily range after US Producer Prices have come in on the strong side for the month of February, rising at an annualized 2.2% and 0.3% on a monthly basis. Core prices have followed suit, rising 0.3% inter-month and 1.5% over the last twelve months.

The selling bias stays intact around the pair so far today against the backdrop of a persistent buying interest around the buck, while expectations of a Fed move at tomorrow meeting remain firm.

Earlier in the session, the German ZEW Survey have surprised to the downside for the current month, adding to the generalized weakness around EUR.

Adding pressure to EUR, the run up to the French presidential elections keeps showing far-right candidate Marine Le Pen leading the vote intention with 27% according to the latest OpinionWay polls. In a hypothetical second round, Le Pen would lose to either candidate E.Macron or F.Fillon.

EUR/USD levels to watch

At the moment the pair is losing 0.22% at 1.0631 and a break below 1.0619 (55-day sma) would target 1.0611 (short-term support line) en route to 1.0591 (20-day sma). On the upside, the next hurdle aligns at 1.0715 (high Mar.13) ahead of 1.0829 (2017 high Feb.2) and finally 1.0873 (high Dec.8 2016).