EUR/USD accelerates gains to daily highs near 1.1620
|- EUR/USD posts decent gains around the 1.1620 region.
- Sellers, steady yields keep the dollar under pressure.
- EuroGroup meeting, US Factory Orders next on tap.
The single currency keeps the buying interest unchanged and lifts EUR/USD back to the 1.1600 neighbourhood at the beginning of the week.
EUR/USD up on dollar weakness
EUR/USD advances for the second consecutive session and manages to regain the 1.1600 neighbourhood following last week’s deep move to record new 2021 lows around 1.1560.
The offered note in the greenback favours the current recovery in the pair, while steady yields in the US bonds market also collaborating with the selling pressure surrounding the buck.
In the docket, the Unemployment Change in Spain shrank by 76.1K, adding to the ongoing recovery in the domestic labour market.
Data across the Atlantic will show Factory Orders for the month of August as well as a short-term bill auctions (3-month, 6-month).
What to look for around EUR
EUR/USD regains some composure and already flirts with the key 1.1600 region on the back of persevering dollar weakness. As usual, dollar dynamics, occasional bouts of risk aversion and higher US yields continue to keep the pair under scrutiny for the time being, while the pick-up in inflation in the region commenced to raise some eyebrows among some ECB members. In the euro region, the likely loss of momentum in the economic recovery, as per some weakness seen in key fundamentals, also caps the upside potential in the pair.
Key events in the euro area this week: EuroGroup meeting (Monday) – ECB Lagarde, final Services PMIs (Tuesday) – EMU Retail Sales (Wednesday) – ECB Accounts (Thursday) – German Balance of Trade (Friday).
EUR/USD levels to watch
So far, spot is gaining 0.18% at 1.1613 and faces the next up barrier at 1.1662 (10-day SMA) followed by 1.1755 (weekly high Sep.22) and finally 1.1767 (55-day SMA). On the other hand, a break below 1.1562 (2021 low Sep.30) would target 1.1500 (round level) en route to 1.1495 (high Mar.9 2020).
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