- US Dollar Index inches higher following last week’s rebound.
- EUR fails to capitalize on improving IFO sentiment data.
- Coming up: Speeches by ECB policymakers and FOMC Chairman Powell.
The EUR/USD pair posted modest losses last week and struggled to stage a decisive recovery on Monday. With the greenback preserving its strength in the second half of the day, the pair touched a fresh 10-day low of 1.1004 and was last seen trading at 1.1010, losing 0.1% on a daily basis.
Earlier in the day, the headline German IFO Business Climate Index improved slightly to 95.0 in November from 84.6 in October and came in line with the market expectation. Commenting on the data, “It is too early to speak of a turnaround in the German economy,” the IFO notes. “Industrial orders still are not satisfactory, export prospects have also darkened,” to make it difficult for the shared currency to find demand.
USD starts week on firm footing
On the other hand, the Dallas Fed Manufacturing Index recovered to -1.3 from -5.1 and beat experts’ forecast of -11.3 to help the greenback continue to stay strong against its major rivals.
The US Dollar Index, which tracks the USD’s value against a basket of six major currencies, advanced to its highest level since November 13th at 98.38 during the American trading hours on Monday.
Later in the session, European Central Bank’s (ECB) Chief Economist Philip Lane and ECB policymaker Mersch will be delivering speeches. Additionally, Federal Open Market Committee (FOMC) Chairman Powell will be delivering his prepared remarks at the Greater Providence Chamber of Commerce’s 2019 Annual Meeting but is not expected to touch on the near-term policy outlook.
Technical levels to watch for
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