EUR/USD looks to regain 1.1300 ahead of Eurozone, US data

• US dollar index, Treasury yields slip again amid Cain’s potential withdrawal, Fed’s Powell.
• An expected decline in the Eurozone industrial data could cap the rebound.
• Next of relevance remains the US prelim UoM consumer sentiment data.

The EUR/USD pair staged a solid comeback in the Asian trades, jumping nearly 50-pips from near the overnight lows of 1.1250 to 1.1294 highs, helped by a sharp sell-off in the US dollar across its main peers.

Focus on macro news amid risk-off

The greenback fell sharply against its six major rivals in a knee-jerk reaction to the latest US media reports, citing that Herman Cain is expected to withdraw from Fed Board of Governors consideration in the coming days after a number of Republican Senators came out against Cain's appointment in the US last session. The selling around the buck gathered pace after some unnamed sources reported that the Fed Chair Powell thinks that the US interest rates are in the right place.

In Thursday’s NA session, the EUR/USD pair tumbled to mid-12s after the US dollar jumped broadly following better-than-expected US PPI figures and the jobless claims hit the lowest in 50 years. Upbeat US fundamentals eased the economic slowdown fears and pushed the Treasury yields higher across the time horizon, in turn lifting the bids for the dollar. Meanwhile, optimistic remarks from the Fed Vice Chair Clarida also helped the USD rebound

Looking ahead, the renewed upside in the major will continue to find some stiff resistance and a pullback cannot be ruled out should the Eurozone industrial production data disappoint and the US prelim UoM consumer sentiment numbers surprise positively.

EUR/USD Technical Levels