EUR/USD sidelined near key hurdle amid change in Europe's attitude toward free trade
|- EUR/USD rises as USD remains broadly weaker on Monday.
- Friday's risk-on continues on optimism that coronavirus-led restrictions will be eased.
- France and Netherlands urge the EU to adopt protectionist trade policies.
EUR/USD is currently trading in a sideways manner just under the 4-hour chart 100-candle average at 1.0852, having bounced up from 1.0822 during the Asian trading hours.
The pair gathered upside momentum in Asia as the US stock futures rose, extending Friday's rally, possibly on continued optimism that the coronavirus-related restrictions will be eased in the US and around the world.
EU protectionism builds
France and the Netherlands have reportedly joined forces to urge the European Union (EU) to use trade policy instruments, mainly tariffs, to ensure the implementation of international environmental and labor standards.
The involvement of pro-free trade Netherlands is indicative of a change in attitude within the EU on the need to protect domestic industry and jobs, a French Diplomat said on Sunday, according to Reuters.
It remains to be seen if the proposal put forward by France and the Netherlands is backed by other members and considered by Trade Commissioner Phil Hogan, who is set to announce a policy review later this year. The rise of protectionism could weigh on the single currency over the long run.
As for Monday, the data docket is empty and EUR/USD is likely to continue tacking cues from the action in the stock markets.
Technical levels
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