EUR/USD A Shade Lower Overnight

A minor uptick for the DXY during Asia-Pac hours leaves EUR/USD 20 pips or so softer on the day at $1.1919. To recap, this comes after the greenback struggled during late NY trade on Tuesday, with equities advancing and Fed Chair Powell failing to offer much in the way of hawkish tones during his latest testimony, sticking to script. This allowed EUR/USD to register best levels of the day at $1.1953. The move resulted in a close above the June 18 high, with bulls now targeting the Jun 17 high ($1.2006). A break above there would switch focus to the 20-day EMA. Initial support is located at the Jun 18/21 low ($1.1848).

• ECB rhetoric from Lane, Rehn & Kazimir failed to move the needle on Tuesday. Elsewhere, a RTRS sources piece suggested that "policymakers are still some way apart on their new inflation strategy but hope to reach an agreement before debating the future of their pandemic-fighting programme in September, sources told Reuters. ECB rate setters agreed on some side issues at a retreat last weekend, such as including environmental considerations into their policy decisions and adding owner-occupied housing costs to their measure of inflation…One source said there was general consensus at the June 18-20 gathering that the ECB could tolerate inflation exceeding its new goal, to be set at 2%, as it has been stuck below that level for most of the past decade. But the source said policymakers had yet to agree on how to phrase that message and how specific it should be about the extent to which inflation would be allowed to overshoot and for how long."
• June's Eurozone Flash PMI surveys headline the European regional docket on Wednesday, with addresses from ECB President Lagarde & Vice President de Guindos also set to garner attention.
• There isn't much in the way of nearby option expiries to worry about for the pair at today's 10AM NY cut. Thursday's 10AM NY cut presents some tangible option expiries with $1.8bn of $1.1800 strikes set to roll off alongside $1.1bn of $1.1900-10 strikes & $1.5bn of $1.1920-25 strikes as well as $1.0bn of $1.2000-20 strikes & $1.4bn of $1.2100-20 strikes.