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EUR/USD testing highs above 1.0620

FXStreet (Edinburgh) - The European currency is appreciating further vs. the dollar on Wednesday, with EUR/USD challenging daily tops around 1.0620/25.

EUR/USD indifferent post data

The pair remained apathetic after the releases in the EMU, with Construction Output in the euro area expanding 1.9% inter-month in January; in addition, the trade surplus shrunk to €7.9 billion, missing estimates at €15.0 billion during the same period.

Market participants remain cautious ahead of the FOMC meeting due in the European evening. The greenback, in the meantime, is extending the weekly sell off following the sharp gains last week, all in anticipation of a hawkish tone from the Committee today.

EUR/USD key levels

As of writing the pair is gaining 0.24% at 1.0623 with the next hurdle at 1.0651 (high Mar.17) ahead of 1.0684 (high Mar.12) and then 1.0718 (high Mar.11). On the flip side, a breach of 1.0551 (low Mar.17) would target 1.0457 (2015 low Mar.16) en route to 1.0400 (psychological level).

LME Inventory Update

The warehouse stocks data released daily by the London Metal Exchange (LME) showed a drop in the inventory levels of Copper, Zinc and Nickel. While Aluminium and Lead stocks witnessed a built-up.
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