EUR/USD firm above 1.0650, approaches last week highs
|- Euro outperformers its G10 rivals on Monday, EUR/GBP near weekly highs.
- US Dollar losses momentum DXY drops to five-day lows.
- EUR/USD looking again at the 1.0700 area.
The EUR/USD is up on Monday, moving toward last week's high and with 1.0700 again on the radar. A stronger Euro across the board has been supportive of the pair, while at the same time, the US Dollar weakened. EUR/GBP is back above 0.8800.
Stocks up, Treasury yields down
The Euro is outperforming on Monday among the G10 space despite lower-than-expected economic data. The Eurozone (EZ) Sentiment Investor Confidence index dropped in March to -11.1, against expectations of a slide to -8.6. EZ Retail Sales rose 0.3% in February, below the 1% increase expected of market consensus; on the positive, January’s -2.7% was revised to -1.6%.
In the US, Factory Orders in January fell by 1.6%, less than the decline expected of 1.8%. The Greenback rose marginally immediately after the report and then retreated.
Equity prices are up on Wall Street, with the Dow Jones gaining 0.42% and the Nasdaq 0.98%. At the same time, US yields are flat for the day. The improvement in market sentiment weighs on the US Dollar.
Market participants await key events ahead for the week that includes comments from Fer Chair Jerome Powell on Tuesday, and the NFP report on Friday.
A test of last week high looms
The EUR/USD is trading at daily highs above 1.0880, moving closer to 1.0690 (last week’s high) and also to the 1.0700/05 area. Technical indicators favor the upside but the Euro needs to break and consolidate above 1.0705 to open the doors to more gains.
The immediate support might be seen at 1.0640 (20-hour Simple Moving Average) followed by 1.0615 and an uptrend line at 1.0605 that should limit the downside on Monday.
Technical levels
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