- EUR/USD keeps the firm tone just below 1.1000.
- German Consumer Climate bounced to -18.5 in June.
- US Consumer Confidence next of relevance in the docket.
The bid tone remains unchanged around the single currency on Tuesday and is now lifting EUR/USD to fresh weekly tops around 1.0980.
EUR/USD propped up by risk, looks to data
EUR/USD has managed to regain some poise in the wake of posting new lows in the 1.0870 region at the beginning of the week.
Indeed, traders’ appetite for riskier assets rebounded sharply on Tuesday following hopes of a coronavirus vaccine (this time announced by biotech Novavax) and amidst rising optimism on the relentless return to normality (well, sort of) of economies around the world.
In the docket, the euro found extra support after the German Consumer Climate (gauged by GfK) rebounded in June. In the US data space, the House Price Index rose at an annualized 5.9% in March while house prices tracked by the S&P/Case-Shiller Index gained 3.9% during the same period.
Later in the NA session, New Home Sales are due seconded by the always-relevant Consumer Confidence gauged by the Conference Board.
What to look for around EUR
EUR/USD came under renewed selling interest after failed to surpass the key 1.1000 mark last week. In addition, the sentiment around the greenback improved on the back of the resumption of US-China trade jitters, all putting the pair under extra pressure. The recent better-than-expected results in Germany and the broader euro area along with positive prospects regarding the re-opening of some economies in the bloc appear to keep occasional bearish attempts contained, all helped by the solid position of the euro area’s current account. In the political scenario, the recent German court ruling against purchases of sovereign debt under the ECB’s QE programme threatens to widen the existing cracks within the euro area and could limit any serious recovery in the currency. This view has been also exacerbated after the French-German proposed fund to help economies to recover from the coronavirus fallout met resistance among some Northern-European members.
EUR/USD levels to watch
At the moment, the pair is gaining 0.72% at 1.0973 and a breakout of 1.0999 (weekly high May 20) would target 1.1010 (200-day SMA) en route to 1.1019 (monthly high May 1). On the downside, immediate contention is located at 1.0774 (weekly low May 14) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).
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