- EUR/USD moves within a consolidation range above the 1.0800 mark.
- Focus remains on the re-opening of the economy in the Old Continent.
- Attention is likely to be on the ZEW survey, Powell, FOMC, PMIs and ECB.
The single currency is alternating gains with losses at the beginning of the week, prompting EUR/USD to keep the prevailing rangebound trade around the 1.0800 neighbourhood.
EUR/USD looks to data, coronavirus
EUR/USD remains side-lined around the 1.0800 mark so far on Monday, as market participants keeps tracking the progress of the gradual re-opening of some economies in Euroland.
In addition, the re-emergence of the US-China trade jitters keep the buying bias almost unchanged around the greenback and undermines any serious bullish attempt in the pair.
In the docket, the ZEW survey is next of relevance seconded by the testimony by Fed’s J.Powell, flash PMIs for the current month, the FOMC minutes and the ECB accounts.
What to look for around EUR
EUR/USD keeps gyrating around the 1.0800 region amidst a tight trading range. Poor results in domestic fundamentals have been showing the initial effects of the coronavirus crisis in the region’s economy, although these were largely anticipated by market participants and thus mitigated somewhat the impact on the currency. In the meantime, the solid position of the euro area’s current account coupled with the gradual re-opening of the economy keep a deeper pullback in the pair somewhat contained for the time being. Meanwhile, 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.
EUR/USD levels to watch
At the moment, the pair is losing 0.04% at 1.0812 and faces immediate contention at 1.0774 (weekly low May 14) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23). On the other hand, a break above 1.0896 (weekly high May 13) would target 1.0934 (55-day SMA) en route to 1.1019 (monthly high May 1).
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