EUR/USD supported near 1.2280, Fedspeak eyed

• Spot remains depressed around the 1.2300 handle after the European close.
• USD stays bid near the 90.00 handle, still capped by 90.20.
• Upcoming Fed-speakers should keep the attention on USD.

EUR/USD is closing the week on the defensive, extending the consolidative theme in the lower end of the range around the 1.2300 milestone.

EUR/USD up on softer US yields

The pair is looking to extend the rebound above the 1.2300 handle bolstered by the persistent drop in yield of the key US 10-year reference, which are re-visiting the area of daily lows in the 2.88% zone.

EUR’s price action has been dependent on the USD-dynamics so far this week, while lower-than-expected results from the German economy (ZEW, IFO) plus lack of any relevant news from the ECB minutes also collaborated with the absence of upside traction.

Event-wise today, New York Fed W.Dudley (permanent voter, centrist) said that bond purchases are a viable tool if US rates return to levels close to zero, while Boston Fed E.Rosengren (2019 voter, centrist) suggested that low real rates seem likely for some time.

EUR/USD levels to watch

At the moment, the pair is losing 0.14% at 1.2313 facing immediate contention at 1.2260 (low Feb.22) followed by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a breakout of 1.2352 (high Feb.22) would target 1.2369 (21-day sma) en route to 1.2537 (high Jan.25).