EURUSD Seeking Direction.

USD strength forced the EUR/USD back from its yesterday year high of 1.4766 to a low point of 1.4650 during the night.

In the last couple of hours, this action has been reversed as the following data releases supported by rising European equities pushed the pair back above 1.4700.

Germany Producer Prices registered 0.5% M/M which was higher than the expected 0.2% M/M whilst the Eurozone Current Account was posted at 6.6B.

Elsewhere, UK Public finances were released at 10.4B compared to an anticipated 14.5B whilst the Public Sector borrowing came in lower than the forecasted 17.6B at 16.1B.

The GBP/USD continued its fall overnight as the UK government considers further stimulus measures to combat increasing worries over economic growth. The GBP/USD resides at 1.6350 presently.

Should investors continue to prefer higher yielding currencies, then a further EUR/USD rally could see resistance levels at 1.4725 and 1.4760 come back under threat. Otherwise, if the USD can muster strength, a test of its support at 1.4640 is likely.