- EUR/USD range-bound on Wednesday above support level 1.1700.
- USD weakness prevented further fall in the pair.
- Lockdown worries resurface.
EUR/USD was range-bound yesterday as the lack of progress in the US fiscal stimulus discussions and the setbacks in the coronavirus vaccine trials pushed and pulled the traders into bullish and bearish camps alternatively.
The US political uncertainty added to the US dollar bearishness along with the slow progress in the stimulus talks. But, concerns about the pandemic revival and the fading possibility of developing a vaccine against the coronavirus on an immediate basis helped the greenback bulls against the euro.
The Eurozone Industrial Production showed an MoM increase by 0.7 Percent in August, lower than what was expected by the traders. The US Producer Price Index moved up by 0.4 Percent MoM in September, an uptick from the 0.3 Percent increase in the earlier month. The PPI on a yearly basis rose by 0.4 Percent compared to -0.2 Percent earlier and beat the market expectations of 0.2 Percent. The numbers from the US and Europe hardly provided an impetus for the EUR/USD, and the trading action resulted in a daily indecisive Doji candlestick pattern.
Today, during the Asian session, the pair continued the sideways action. EUR/USD trading will depend on the US dollar price dynamics as the day ahead awaits a light economic docket in the Eurozone. In comparison, the US session will witness data flow of regional manufacturing indices and the initial weekly jobless numbers.
However, any meaningful action might be curtailed by the fears of lockdown due to the resurgent coronavirus.