EUR/USD up smalls around 1.2380, US data on sight

• The pair remains sidelined below the 1.2400 handle on Thursday.
• USD lost upside momentum above 89.70, slipping back to 89.60 later.
• EMU’s Current Account, Philly Fed index next of relevance ahead in the day.

EUR/USD keeps the weekly rangebound theme intact today, navigating the upper 1.2300s after briefly breaking above 1.2400 the figure on Tuesday.

EUR/USD looks to US data for direction

The lack of relevant news or significant drivers continues to fuel the broader multi-month 1.2150/1.2550 consolidative scheme around the pair.

In the meantime, a mild risk-on bias prevails in the global markets, where the greenback has been creeping higher after bottoming out in the 89.20 region at the beginning of the week.

That said, market participants now seem to look to the ECB to deliver some fresh news at its meeting next week, with the initial speculations pointing to a dovish message from the central bank and Draghi’s press conference. It is worth mentioning that members of the Council remain unconvinced of the sustainability behind inflation in the region, while PMIs and recent ZEW readings showed some loss of momentum.

Data wise today, February’s Current Account figures in the euro area are due seconded by US Initial Claims and the Philly Fed index. In addition, FOMC’s L.Brainard and Cleveland Fed L.Mester are due to speak.

EUR/USD levels to watch

At the moment, the pair is gaining 0.02% at 1.2376 and a break above 1.2414 (high Apr.17) would target 1.2478 (high Mar.27) en route to 1.2538 (high Jan.25). On the flip side, immediate contention emerges at 1.2300 (low Apr.12) seconded by 1.2214 (low Apr.6) and finally 1.2153 (low Mar.1).