- EUR/USD adds to Friday’s gains and approaches the 1.1300 mark.
- German Factory Orders, EMU’s Retail Sales, Sentix index next on tap.
- ISM Non-Manufacturing, Markit’s Services/Composite PMI in the US docket.
The single currency is extending the upbeat momentum at the beginning of the week and pushes EUR/USD to fresh 2-day highs in the boundaries of 1.13 the figure.
EUR/USD looks to data, risk trends
EUR/USD is up for the second session in a row on Monday, always against the backdrop of the improved optimism among market participants and the persistent offered bias surrounding the buck.
Indeed, the relentless progress in the re-opening of economies around the world plus the strong rebound in fundamentals in Euroland appear to support the idea that the worst of the coronavirus pandemic is already behind us and keep bolstering the upbeat sentiment.
Later in the euro docket, German Factory Orders and Construction PMI are due in first turn seconded by the Sentix Index and Retail Sales in the broader euro bloc. Across the pond, the key ISM Non-Manufacturing will grab all the attention seconded by the final print of the Services/Composite PMIs tracked by Markit.
What to look for around EUR
EUR/USD’s advance appears propped up by the better mood in the global markets, in turn sustained by optimism around the ongoing recovery post-pandemic. The constructive view in the euro, in the meantime, stays well and sound and supported by the improvement of key fundamentals in the region amidst the current (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.40% at 1.1289 and a break above 1.1348 (weekly high Jun.23) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the other hand, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1039 (200-day SMA).
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