- EUR/USD picks up bids but stays sluggish amid multiple markets’ off in Asia.
- France revised down economic forecasts on third national lockdown, US jobs report came in strong.
- S&P 500 Futures print mild losses, doubts over Biden’s infrastructure spending plan gain momentum.
- Traders await Tokyo open for fresh catalysts as Easter Monday will challenge the moves.
EUR/USD consolidates Friday’s losses around 1.1775 amid quiet trading in Asia. The major currency pair began the week on a strong foot while jumping from 1.1756 to 1.1767, around 1.1765 by the press time. However, the bulls lack upside momentum amid Easter Monday celebrations in major Asian countries. Also challenging the quote could be the coronavirus (COVID-19) woes in Europe and worries over US President Joe Biden’s $2.25 trillion infrastructure plan.
Bears have an upper hand…
Although EUR/USD buyers seemed to have cheered Friday’s strong US employment numbers during the weekly open, the French government’s economic worries and hurdles to the key market stimulus, not to forget covid variant woes, can test the upside momentum.
French Finance Minister Bruno Le Maire revised down France’s economic forecasts during Sunday, taking down GDP estimates to 5% and inflating public dent projections to 9.0%, while citing the nation’s third coronavirus (COVID-19) lockdown. The European major has been struggling with the virus off-late and the fears of the covid variant, as well as vaccine jitters with the UK, are an extra burden on Paris.
Also challenging the sentiment is the Biden administration’s firm support to the tax hike plan, which in turn raises hurdles for the key economic aide as Republicans are strongly against the move and may use their powers in the Senate to reject the bill.
Furthermore, China’s tussle with the West and the US Treasury yield’s rally, mainly backed by the reflation fears and upbeat US fundamentals, also challenge the EUR/USD bulls.
Amid these plays, S&P 500 Futures drop 0.07%, shifting gears after Friday’s upbeat performance on strong US NFP.
Looking forward, off in major economies can keep traders searching for risk catalysts to portray intermediate moves. However, the sellers can follow upbeat US Treasury yields to stay hopeful.
EUR/USD bulls have a bumpy road ahead as a downward sloping resistance line from February 25 and 200-day SMA, respectively around 1.1775 and 1.1885, stand tall to test the recovery moves.