With the opening of trading today the single currency has lost nearly 50 points and dropped to a mark 1.3480 . The reason for this is likely to become another political deadlock in Italy.
Statistics from Germany contributed to a weakening of EUR / USD
The positions of the single currency at the beginning of the week were insecure. Another round of political crisis in Italy , it seems, has a negative impact on investor sentiment . According to published today in the German media , the volume of retail sales in August fell short of expectations of economists : an increase of 0.5 % m / m and 0.3 % y / y compared to the projected 0.8 % m / m and 0.4 % y / y g Now, market participants are preparing to enter data on consumer price inflation in the euro area. Economists expect a 1.2% y / y Core CPI is likely to be 1.1 % y / y Meanwhile, the U.S. was to release data on manufacturing activity in the Federal Reserve Bank of Dallas , and Chicago.
Key Levels EUR / USD
Currently trades are conducted in 1.3489 ( +0.01 %). Break of 1.3459 mark is likely to send a pair of EUR / USD to supports at 1.3453 and 1.3399 ( highs 20 and 28 August). As for going up, initial resistance is located at 1.3569 ( Sept. 19 high ) . Then, the euro could head towards 1.3598 and 1.3660 ( highs 5 and 4 February).
