EUR/USD gyrates around 1.2180 on US data

• The pair tests lows near 1.2160 and rebounds on US data.
• US PCE came in at 1.5% YoY, Personal Spending rose 0.2% MoM.
• Fed’s J.Powell second testimony expected later in the session.

The demand for the single currency remains subdued so far this week, with EUR/USD attempting a tepid rebound to the 1.2170/75 band after bottoming out near 1.2160.

EUR/USD weaker ahead of Powell, ISM

Apart from occasional (and ephemeral) bullish attempts, the pair keeps the bearish stance in the second half of the week, briefly testing new multi-week lows in the proximity of 1.2160 and always against the backdrop of a solid rally in the buck.

Spot navigates the 1.2170 region after US Personal Income rose 0.4% MoM and Personal Spending matched estimates at 0.2% inter-month in January. Additional releases saw inflation figures tracked by the Core PCE rising 1.5% on a year to January, while Initial Claims rose to 210K WoW, the lowest level since 1969.

Ahead in the session, Fed’s Jerome Powell will testify before the Senate Banking Committee and the ISM will publish its always-critical manufacturing gauge.

Further our, New York Fed and permanent voter W.Dudley (centrist) is also due to speak later in the NA session.

EUR/USD levels to watch

At the moment, the pair is losing 0.12% at 1.1278 and a breach of 1.1263 (low Mar.1) would target 1.2090 (high Jan.4) en route to 1.1916 (2018 low Jan.9). On the upside, the immediate hurdle is located at 1.2301 (10-day sma) seconded by 1.2337 (21-day sma) and then 1.2356 (high Feb.26).