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EUR/USD retakes 1.1200

FXStreet (Edinburgh) - The decline in the euro seems to be taking a breather now, with EUR/USD regaining the low-1.1200s.

EUR/USD bounces off 1.1160

After hitting multi-day lows in the 1.1160 area, the pair is now improving a tad towards the 1.1210/15 band. A continuation of the upside momentum in the US dollar keeps weighing on the pair, while poor results from the ZEW Survey in Germany and the EMU have also collaborated with the downside.

Ahead in the session, the US calendar will take centre stage via the publication of Housing Starts (1.019M exp.) and Building Permits (1.060M exp.) during last month.

EUR/USD relevant levels

As of writing the pair is down 0.99% at 1.1204 with the next support at 1.1135 (21-d MA) ahead of 1.1131 (low May 11) and then 1.1106 (38.2% of 1.0521-1.1468). On the flip side, a break above of 1.1278 (38.2% of 1.1468-1.1160) would expose 1.1289 (10-d MA) and then 1.1328 (high May 19).

Japan to invest $100B in Asian infrastructure

The Japanese government is planning to spend up to $100 billion in public-private funding for infrastructure development in countries across Asia over the next five years, Jiji press, a wire service in Japan, reported on Tuesday.
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USD/CAD rejected at 1.22

The US dollar remains elevated against its Canadian counterpart in the European session, driving USD/CAD near 1.22 barrier, as traders favour the greenback ahead of US macro data. While Bank of Canada (BoC) Governor Stephen Poloz's speech followed by a press conference will be closely watched.
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