EUR/USD defends bids near 1.1320 ahead of Juncker-Conte meeting

• USD bulls consolidate the upside amid improved trade sentiment, higher Treasury yields.
• Euro finds support from upbeat Italian jobless rate that arrived at 10.2% in Q3.
• All eyes on the Budget meeting between the EU’s Juncker and Italy’s PM Conte and US CPI for fresh direction.

The EUR/USD pair extends its bearish consolidative mode near weekly lows into the European trading, as the bulls await the outcome of the meeting between the European Commission President Juncker and Italy’s PM Conte on the Budget issue for the next direction.

Markets are hopeful that the standoff between Brussels and Rome come to an end today, especially with PM Conte seeking to reduce the Budget deficit target at 2.05%-2.08%. Ahead of the meeting, the US CPI report for November could have a significant impact on the spot, especially after the US PPI data bettered estimates and triggered a rebound in the Treasury yields across the curve. The US CPI is expected to tick down to 2.2% y/y in Nov while the core figures are seen a tad firmer at 2.2% y/y in the reported month.

In the meantime, the USD dynamics amid increased odds of the US-China trade deal and the Eurozone industrial figures will provide some trading impetus while the outcome of the UK leadership contest could also have a “rub-off” effect on the Euro.

EUR/USD Technical Levels