EUR/USD keeps the range on better IFO

FXstreet.com (Edinburgh) - The single currency spiked 1.3240 after the better data from the German IFO on Thursday, although the EUR/USD returned to the 1.3200/10 area soon after.

EUR/USD muted

The pair is now back to the comfort zone around 1.3200 the figure, almost indifferent to the upbeat tone from the IFO and higher Consumer Confidence from Italy during July. Further data showed that EMU’s M3 Money Supply rose below forecasts during June and Private Loans contracted further during the same period. Next on tap will be US Initial Claims (340K exp.) and Durable Goods Orders (0.5% exp.). “The ECB’s recent commitment to maintain present or lower rates for an extended period is likely to remain unchanged and will help dampen upside potential for both euro-zone short rates and the euro from strengthening cyclical momentum”, assessed Lee Hardman, Currency Analyst at BTMU.

EUR/USD key levels

The pair is now up 0.05% at 1.3207 with the next resistance at 1.3256 (high Jul.24) ahead of 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, a break below 1.3188 (low Jul.25) would open the door to 1.3177 (low. Jul.24) and finally 1.3164 (low Jul.23).

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