EUR/USD jumps 0.30% as USD remains soft

• EUR/USD trades at 1.2257 versus 1.2228 in Asia. 
• Dollar drops despite coronavirus fears and weak China data. 
• The focus this week on German, US data, and Georgia Senate elections.

EUR/USD is charting gains with the US dollar on the offer despite coronavirus concerns and weak China data. 

The pair is currently trading just above 1.2255, representing a 0.34% gain on the day, having picked up a bid near 1.2228 in Asia. 

Fears over the new strain of the coronavirus are forcing major nations to take stricter steps.

New Zealand has tightened border controls; South Korea has imposed a country-wide ban on private gatherings of more than four people. Scotland and Britain are also mulling stricter restrictions. Meanwhile, Dr. Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases, has warned that the coronavirus outbreak in the world’s largest economy may worsen over the coming weeks. 

Further, China’s Caixin Manufacturing PMI, which focuses on small and medium-sized export-oriented units, released early Monday showed the activity slowed in December. The gauge fell to 53.00 in December from November’s 54.9, missing the expected reading of 54.9. The government PMI also declined to  51.9 in December from 52.1 in November, data released last week showed. 

So far, however, the dollar has refused to show signs of life. Investors continue to offer the greenback, possibly on expectations that the Federal Reserve would keep rates low for a prolonged period, and the global economy would chart a swift recovery on coronavirus vaccines. 

Data-wise, the focus this week will be on PMI numbers due for release across the globe, German inflation, and unemployment data, and the US monthly Nonfarm Payrolls. Also, both Senate seats in the US state of Georgia will be up for grabs on Jan. 5. Conesus on Wall Street is that equity markets would correct if Democrats win both seats, allowing them to roll back President Trump’s corporate tax cuts and increased financial and environmental regulations.

Technical levels