EUR/USD stays bid near 1.0870, focus on the Eurogroup

EUR/USD regains the upside and tests 1.0880 on Thursday.
The second Eurogroup meeting is expected later today.
US Initial Claims, U-Mich index in the limelight later in the session.

Pablo Piovano FXStreet

The shared currency has regained the smile in the second half of the week and is now lifting EUR/USD to the 1.0870/80 band.

EUR/USD focused on the Eurogroup event

EUR/USD is navigating the upper end of the daily range in the 1.0870/80 band, leaving behind Wednesday’s negative price action amidst the resumption of the selling bias in the greenback.

In the meantime, market participants should be closely following the headlines from the upcoming Eurogroup meeting, where officials are expected to keep debating any form of joint issuance of debt aimed to help members of the bloc to fight the fallout of the coronavirus.

Further out, developments around the coronavirus keep dictating the mood in the global markets, where some stabilization in deaths and infected cases seems to has stabilized in recent days, particularly in Spain and Italy, bringing in occasional bouts of optimism in the risk appetite trends.

In the docket, the German trade surplus widened to €21.6 billion during February, surpassing forecasts. Later in the NA session, the weekly report of Initial Claims will grab exclusive attention seconded by the release of Producer Prices and the preliminary gauge of the Consumer Sentiment for the current month.

What to look for around EUR

The shared currency has managed to regain composure amidst low volatility and thin trade conditions on Maundy Thursday and ahead of the Good Friday holiday. On the macro view, recent better-than-expected results in fundamentals in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend, although the underlying stance still remains well on the negative side. In the very near term, however, headlines from the upcoming Eurogroup meeting (Thursday) are seen driving the mood around the euro.

EUR/USD levels to watch

At the moment, the pair is gaining 0.17% at 1.0874 and a break above 1.0926 (weekly high Apr.7) would target 1.0976 (55-day SMA) en route to 1.0992 (monthly low Jan.29). On the other hand, immediate contention emerges at 1.0768 (monthly low Apr.6) seconded by 1.0635 (2020 low Mar.20) and finally 1.0569 (monthly low Apr.10 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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