- EUR/USD begins the week with an uptick to refresh highest levels since February 26, wobbles around the top of late.
- EU battles for more vaccines as jab jitters disappoint the bloc members, Brexit, sluggish data add to the fears.
- DXY marked the biggest daily losses in six months after NFP debacle.
- Qualitative factors will be the key amid a light calendar.
Having recently refreshed the multi-day top, followed by a pullback to 1.2161, EUR/USD stays firmer around 1.2175, up 0.05% intraday, during Monday’s Asian session. In doing so, the currency major pair refreshes a 10-week high as the weekend news concerning the coronavirus (COVID-19) vaccine deal by the European Union (EU) propels Friday’s rally due to the NFP shock.
European Commission (EC) President Ursula von der Leyen announced on Saturday that the EU has struck a deal with BioNTech/Pfizer for up to 1.8 billion extra doses of their Covid-19 vaccine. Late last week, the bloc leader also mentioned to jab 30 Europeans every second. The old continent has been criticized for a slow start to the vaccinations and jab jitters with the UK.
Hence, the latest vaccine deal with one of the vaccine leaders can help the EUR bulls to stretch Friday’s strength, backed by the downbeat US employment figures for April. Not only the headline Nonfarm Payrolls that dropped to 266K versus a million expected but the Unemployment Rate also jumped from 5.8% market consensus to 6.1% for the said month.
Despite being a strong disappointment to the US job watchers, global equities and commodities rallied after the news. The reason could be traced to the US Federal Reserve (Fed) as the downbeat American employment data defends the Fed’s easy money policies that have been under attack of late.
While the US data and EU’s vaccine deal back the mild risk-on mood, Brexit jitters and Brussels’ failures to flash strong economic figures like the US and UK, obviously before Friday, probe the risk appetite.
Against this backdrop, S&P 500 Futures print 0.11% intraday gains by the press time.
Looking forward, a lack of major data/events to kick-start the week may keep challenging the EUR/USD bulls. However, sellers are less likely to take entries unless getting any strong confirmation.
Although multiple hurdles test EUR/USD bulls below 1.2210, even short-term bears may not risk entries unless witnessing a daily closing below April’s top of 1.2149.
Additional important levels
|Today last price||1.2173|
|Today Daily Change||6 pips|
|Today Daily Change %||0.05%|
|Today daily open||1.2167|
|Previous Daily High||1.2172|
|Previous Daily Low||1.2053|
|Previous Weekly High||1.2172|
|Previous Weekly Low||1.1986|
|Previous Monthly High||1.215|
|Previous Monthly Low||1.1713|
|Daily Fibonacci 38.2%||1.2126|
|Daily Fibonacci 61.8%||1.2098|
|Daily Pivot Point S1||1.209|
|Daily Pivot Point S2||1.2012|
|Daily Pivot Point S3||1.1971|
|Daily Pivot Point R1||1.2208|
|Daily Pivot Point R2||1.2249|
|Daily Pivot Point R3||1.2327|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.