EUR/USD firmer above 1.18 ahead of PMIs

• Spot moves further north of the 1.18 handle.
• Doubtful FOMC keeps weighing on USD.
• PMIs, ECB minutes next on the docket.

The single currency keeps its march higher unabated so far this week, with EUR/USD managing to regain the 1.1800 handle and above amidst the persistent selling bias around the buck.

EUR/USD looks to PMIs, ECB

The pair is advancing for the third session in a row so far today, navigating the area of multi-day tops in the 1.1830/40 band against the backdrop of thin trade conditions and scarce volatility due to the Thanksgiving Day holiday in the US.

The greenback has been on the defensive for the most part of the week following uncertainty around the Republicans-led tax reform and comments by Chief Yellen on inflation.

In addition, yesterday’s FOMC minutes did not help the Dollar either, as the Committee still appears puzzled about the lack of traction in inflation amidst a tighter labour market.

Later in the session, the ECB will publish its minutes from the late October meeting, while advanced PMIs in core Euroland will be the salient events during the morning in the Old Continent.

EUR/USD levels to watch

At the moment, the pair is gaining 0.06% at 1.1826 and a breakout of 1.1860 (high Nov.15) would aim for 1.1882 (high Oct.12) and then 1.2033 (high Sep.20). On the flip side, the immediate support lines up at 1.1781 (55-day sma) seconded by 1.1760 (10-day sma) and finally 1.1713 (low Nov.21).