The EUR/USD pair maintains its upward trend near 1.1900.
In July, the Sentix index of the European Monetary Union came in slightly below expectations.
C.Lagarde of the European Central Bank talks later in the conference.
The buying demand in the single currency is still strong, and EUR/USD is now trading at daily highs, slightly below 1.1900, the number from Monday.
The EUR/USD pair is up for the second day in a row, extending its recovery from three-month lows near the 1.1800 level set on Friday.
In fact, the dollar is still under selling pressure as investors examine the latest Payrolls statistics (+850K), which is compounded by the minimal trade conditions and low volatility in response to the US markets’ inactivity due to the Independence Day holiday.
In terms of Euroland data, the final Services PMI in Germany for June was 57.5 (up from 58.1 preliminary) and 58.3 in the broader euro area (from 58.0 preliminary). The Sentix Index improved to 29.8 in July, according to new data (from 28.1).
Chairwoman Christine Lagarde will take part in a panel discussion in France later in the session.
What to look for in the EUR area
Sellers were unable to push EUR/USD below 1.1800, which was the level at the end of last week. In the meantime, spot price movement is expected to be dominated by dollar dynamics, especially after the previous FOMC meeting bolstered expectations of rising inflation and perhaps tapering earlier than planned. Further out, the European currency is supported by positive outcomes from the bloc’s fundamentals, as well as improved morale, a significant comeback in economic activity, and investors’ desire for riskier assets.
This week’s major events in the eurozone include: Monday: ECB’s Lagarde; Tuesday: Germany/EMU ZEW survey; Thursday: ECB Accounts; Friday: ECB’s Lagarde (Friday).
On the back boiler, there are a number of important considerations to consider: In the region, there has been an asymmetric economic recovery. The rate of increase in inflation is likely to continue. The vaccine’s dissemination is progressing. Political effervescence around the EU Recovery Fund is likely. Elections in Germany. The move of investors to European equities.
So far, spot is up 0.12% at 1.1878, with the following resistance levels at 1.1975 (weekly high June 25), 1.1997 (200-day SMA), and finally 1.2000. (psychological level). On the downside, a break below 1.1822 (July’s monthly low) would target 1.1762 (November-January rally’s 78.6 percent Fibo) and lead to 1.1704. (2021 low Mar.31)./n
