EUR/USD stuck in tight range below 1.1300, US PPI, Fedspeak eyed

• US dollar index attempting a comeback post-FOMC decline.
• The pair could be supported by weaker Treasury yields, risk-off.
• Focus shifts to US PPI, jobless claims and Fedspeak for fresh incentives.

The bears continue to guard the 1.1290 barrier, leaving the EUR/USD pair listless in a 15-pips narrow range so far this Thursday.

EUR/USD holds above daily pivot at 1.1265

The spot looks to consolidates Wednesday’s sharp V-shaped recovery from 1.1230 to 1.1289 levels following the dovish stance maintained by the European Central bank (ECB) while reiterating that risks to the economy remain tilted to the downside.

The recovery in the major can be mainly attributed to softer US price pressures at first and later on to the steep sell-off in the greenback after the FOMC March meeting’s minutes underscored the Fed’s patience stance, with no rate hikes seen this year.

Meanwhile, the latest leg down in the pair is mainly due to a fresh round of buying seen around the US dollar across its main competitors but the downside appears cushioned amid weaker Treasury yields, as moderate risk-aversion persists amid looming US tariffs risk on the EU and global economic slowdown concerns.

Amid softer risk tones and a likely broad USD comeback, markets await the US PPI, jobless claims and Fedspeak for the next direction. The speech by the Fed Vice President Clarida remains in the spotlight, as he is likely to speak on the economy and monetary policy.

EUR/USD Technical Levels