- EUR/USD adds to Monday’s losses below the 1.0900 mark.
- Spanish unemployment rose by around 283K in April.
- US ISM Non-Manufacturing next of relevance across the pond.
The bearish note around the single currency remains well and sound in the first half of the week, with EUR/USD now retreating to the sub-1.0900 area, recording fresh weekly lows at the same time.
EUR/USD focused on data, risk trends
EUR/USD is looking to reverse the pessimism seen on Monday and gyrates around the 1.0900 neighbourhood on the back of alternating risk appetite trends and mitigating strength in the greenback.
Data wise in Euroland, Producer Prices in the broader bloc are due later for the month of March. Earlier, the Unemployment Change in Spain rose by 282.9K, adding to the previous 302.3K build.
In the US data space, the ISM Non-Manufacturing will grab all the attention later in the NA session seconded by Trade balance figures and the IBD/TIPP index. In addition, FOMC’s Evans, Bostic and Bullard are due to speak.
What to look for around EUR
The euro remains on the defensive so far this week against the backdrop of the improvement in the mood surrounding the greenback, in turn supported by the persistent risk aversion theme. In the meantime, the attention in the Old Continent stays on the re-opening of the economy as infected cases and deaths by the coronavirus continue to ebb, particularly in Spain and Italy.
EUR/USD levels to watch
At the moment, the pair is up 0.01% at 1.0905 and a breakout of 1.1019 (weekly/monthly high May 1) would target 1.1032 (200-day SMA) en route to 1.1147 (weekly high Mar.27). On the flip side, the next support lines up at 1.0885 (weekly low May 5) seconded by 1.0814 (78.6% Fibo of the 2017-2018 rally) and finally 1.0727 (weekly low Apr.24).
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