- EUR/USD hovers around the 1.1250/60 band on Thursday.
- Markets’ focus remains on the recent pick-up in coronavirus cases.
- Initial Claims, Philly Fed index next of relevance in the calendar.
Following two consecutive daily pullbacks, EUR/USD is now posting some modest gains in the mid-1.1200s at the time of writing.
EUR/USD looks to data, coronavirus
EUR/USD has reclaimed the 1.1250/60 band, or daily highs, on Thursday amidst the broad-based cautious note in the global markets.
In fact, the pair has been navigating in an erratic fashion as of late, broadly in tandem with the risk-appetite trends and investors’ alternating sentiment.
Indeed, the resurgence of new coronavirus cases in China and Europe in combination with the unabated uptrend in infected cases in the US have been lending support to the safe haven universe in detriment of the demand for the riskier assets, all collaborating with the leg lower in the pair following monthly tops beyond 1.1400 the figure (June 10).
Nothing relevant data wise in Euroland today should leave the bulk of the attention to the US docket, where the week Claims and the Philly Fed index will take centre stage.
What to look for around EUR
EUR/USD maintains the choppy fashion so far this week, with gains clearly limited around the 1.1350 region. In the meantime, price action continues to look to the gradual return to some sort of normality in economies of the Old Continent as well as some concerns regarding the probability of a second wave of coronavirus contagion. The constructive view in the euro, however, remains well sustained by the gradual and relentless re-opening of economies in Europe and by the ongoing monetary stimulus announced by the ECB, Germany and the European Commission. 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 0.06% at 1.1250 and a break above 1.1422 (weekly/monthly high Jun.10) would target 1.1448 (50% Fibo of the 2017-2018 rally) en route to 1.1495 (2020 high Mar.9). On the other and, immediate contention emerges at 1.1212 (weekly low Jun.12) seconded by 1.1186 (61.8% Fibo of the 2017-2018 rally) and finally 1.1026 (200-day SMA).
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