EUR/USD remains calm below 1.2200 amid softer USD, German data eyed
- EUR/USD stays muted on Monday in the Asian trading hours.
- US dollar remains subdued after downbeat Job data.
- The euro fails to lock in gains, ECB eyed later in the week.
The EUR/USD pair trades with minute losses on the first day of the fresh trading week. The pair moves in a very narrow range of 15-pips with no meaningful traction.
At the time of writing, EUR/USD trades at 0.01%, down 0.02% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its rival, trades at 90.12 with 0.41% losses for the day. The greenback came under selling pressure on Friday after a softer than expected US job data was reported for the second straight month.
The job data showed US NonFarm Payrolls came at 559K in May and missed the market expectations by nearly 90k. Investors digested the data and it seemed inflation worries had cooled down, as the market felt that data was not encouraging to cause a shift in the Fed’s current monetary policy stance. This, in turn, weighed on the US dollar's demand.
In the meantime, US Treasury Secretary Jenet Yellen said on the weekend that US President Joe Biden should push forward with his $4 trillion spending plans even if it means higher inflation and interest rates. The greenback found some support near the lower levels following the comments.
However, the shared currency could not benefit much from the USD weakness. The Eurozone Retail Sales dropped more than expected in April. The European Central Bank (ECB) hinted it might follow the US Federal Reserve’s lead and will reduce its corporate bond purchases.
As for now, investors are keeping their eye on German Factory Orders, in the wake of a light US economic calendar.
EUR/USD additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
