- EUR / USD failed to take advantage of Friday’s gains on Monday.
- The US Dollar Index is rising modestly at the beginning of the week.
- The focus shifts to the release of high-level data from the eurozone and the US.
After posting strong gains on Friday, the pair EUR/USD It started the new week quietly and continues to move sideways below 1.1800 during US trading hours. At time of writing, the pair was down 0.15% on the day at 1.1775.
DXY goes up modestly on Monday
In the absence of high-level macroeconomic data releases and fundamentals, the USD market valuation is driving EUR / USD movements on Monday. Supported by risk aversion flows, the US Dollar Index (DXY) remains in positive territory above 92.60 in the second half of the day.
However, the more than 2% drop seen in the benchmark 10-year US Treasury yield is limiting the rise in DXY and helping EUR / USD to consolidate its losses.
On Tuesday, second quarter GDP data from the euro area will be analyzed to give new impetus. Investors expect the eurozone economy to expand 13.7% annually. Later in the day, retail sales and industrial production data for July will be included in the US economic calendar.
Meanwhile, the latest CFTC positioning report revealed that net longs in the euro fell to the lowest level in more than a year.
Technical levels
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