EUR/USD lays ground to reclaim 1.1400, downside drag remains

• The Euro popped in bullish action to kick off the trading week as the US Dollar weakens amidst risk-recovery flow.
• G20 rolls out a successful summit, at least delaying trade war angst for the time being.

EUR/USD trading near new midline at 1.1340 in Monday’s early Pacific session after revived risk appetite from the weekend’s successful G20 Leaders’ Summit yielded the groundwork for a broad-market recovery after US President Donald Trump and China’s Xi Jinping agreed to postpone further tariff hikes for an extra 90 days as the two sides return to the negotiating table.

The Italian government’s debt debacle remains a key issue for Euro bulls, and although Italy’s Prime Minister Conte met with the European Commission’s Jean-Claude Juncker over the weekend and statements about Italy and the EU working to find a deal were given, details remain light and investors will likely remain skeptical about Italy’s deficit-spending government budget and their growth projections for their own domestic economy.

Eurozone PMIs for November are slated for today, with Germany PMI dropping at 08:55, quickly followed by the Euro-area broad PMI expected shortly after at 09:00 GMT. and while both are expected to remain steady with their previous readings (51.6 and 51.5 respectively), the action for today could come from the US’ ISM Manufacturing PMI at 15:00 GMT, expected to tuck up from 57.7 to 57.8.

EUR/USD Technical Levels