- EUR / USD rose to a daily high of 1.2076 on Monday.
- The US Dollar Index remains in negative territory around 91.00.
- Falling US Treasury yields weighed on the USD at the start of the week.
The pair EUR/USD It started the new week calmly and spent the first half of the day moving sideways just above 1.2000. With the dollar under renewed selling pressure during the first hours of trading in the United States, the pair gained traction and reached a daily high of 1.2076 before entering a consolidation phase. At time of writing, the EUR / USD was up 0.33% on the day at 1.2055.
DXY descends to level 91.00
US data revealed on Monday that economic activity in the manufacturing sector continued to expand at a robust pace in April. However, ISM’s Manufacturing PMI reached 60.7 and disappointed the market expectation of 65.
Although the initial market reaction to this data was largely muted, US Treasury yields turned south, forcing the US Dollar Index (DXY) to fall to a daily low of 90.86. At the moment, the 10-year benchmark US Treasury yield is shedding 1.3% on the day and the DXY is down 0.32% to 91.00.
Meanwhile, the major Wall Street indices opened in positive territory on Monday and made it difficult for the DXY to achieve a rally.
Later in the session, market participants will closely follow FOMC President Jerome Powell’s speech.
There will be no major data releases on the European economic docket on Tuesday and the USD market valuation is likely to continue to drive EUR / USD action.
Technical levels
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