EUR/USD climbs beyond mid-1.2100s, refreshes session tops amid notable USD supply
|- EUR/USD staged a goodish intraday bounce from multi-day lows, around the 1.2100 mark.
- A turnaround in the risk sentiment weighed on the safe-haven USD and remained supportive.
- Market participants now look forward to the US Consumer Confidence for a fresh impetus.
The intraday USD selling picked up pace during the early North American session and pushed the EUR/USD pair to fresh daily tops, around the 1.2160-65 region in the last hour.
The pair managed to find decent support ahead of the 1.2100 round-figure mark and staged a goodish bounce from near one-week lows touched earlier this Tuesday. A turnaround in the global risk sentiment prompted some fresh selling around the safe-haven US dollar, which, in turn, was seen as a key factor driving the EUR/USD pair higher.
Despite doubts about the size and timing of the US stimulus package, hopes for a strong economic recovery remained supportive of the underlying bullish tone in the financial markets. The risk sentiment got an additional boost after the International Monetary Fund revised its forecast for 2021 global economic growth to 5.5% from 5.2%.
The IMF, its latest World Economic Outlook report, cited stronger-than-expected momentum in the second half of 2020 behind the upbeat economic outlook, albeit warned that the second wave of infections and new variants of COVID-19 poses risk. The IMF further added that countries should continue to support economies until vaccine-powered normalization is underway.
Market participants now look forward to the release of the Conference Board's US Consumer Confidence Index for some impetus. Traders might further take cues from the US stimulus headlines, which could impact the market sentiment and influence the USD. The key focus, however, will remain on the FOMC decision on Wednesday and Thursday's release of the Advance US Q4 GDP report.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.