EUR/USD eases to 1.1960 on ECB chatter

EUR/USD receded extra ground following ECB news, coming down to test the 1.1960/50 band after briefly piercing the psychological 1.2000 handle earlier in the session.

EUR/USD weaker on ECB, looks to US data

Spot lost some upside momentum after news agency Reuters cited that some elements of ECB decision could be put off until December. In addition, concerns and division appeared to have emerged in response to the recent and strong appreciation of the exchange rate.

Furthermore, ECB policymakers disagree on whether to set firm end-date for the current bond-purchasing programme at the next meeting in October, while some members want to be able to extend or expand the QE programme in case of need.

In the data space, the German ZEW survey came in above expectations for the current month, while July’s current account widened more than initially forecasted.

In the US docket, housing starts, building permits and export/import prices are next on tap.

EUR/USD levels to watch

At the moment, the pair is up 0.11% at 1.1968 and a break above 1.2006 (high Sep.19) would target 1.2041 (high Sep.11) and finally 1.2092 (2017 high Sep.6). On the flip side, the immediate support aligns at 1.1949 (low Sep.19) seconded by 1.1919 (21-day sma) and then 1.1851 (5-month support line).