EUR/USD continues to move sideways below 1.1800
|- EUR/USD failed to build on Friday's gains on Monday.
- US Dollar Index is edging modestly higher at the start of the week.
- Focus shifts to high-tier data releases from eurozone and US.
After posting strong gains on Friday, the EUR/USD pair started the new week in a calm manner and continues to move sideways below 1.1800 during the American trading hours. As of writing, the pair was down 0.15% on the day at 1.1775.
DXY edges modestly higher on Monday
In the absence of high-tier macroeconomic data releases and fundamental drivers, the USD's market valuation is driving EUR/USD's movements on Monday. Supported by the risk-off flows, the US Dollar Index (DXY) is staying in the positive territory above 92.60 in the second half of the day.
Nevertheless, the more-than-2% decline witnessed in the benchmark 10-year US Treasury bond yield is limiting DXY's upside and helping EUR/USD consolidate its losses.
On Tuesday, second-quarter GDP data from the euro area will be looked upon for fresh impetus. Investors expect the eurozone economy to expand by 13.7% on a yearly basis. Later in the day, July Retail Sales and Industrial Production data will be featured in the US economic docket.
Meanwhile, the latest CFTC Positioning report revealed that net longs in the EUR declined to the lowest level in more than a year.
CFTC Positioning Report: EUR net longs continued to shrink.
Technical levels to watch for
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