- EUR / USD is struggling to rally above 1.2100 on Monday.
- The US Dollar Index is approaching 91.00 in the American session.
- The release of macroeconomic data did not provoke a significant market reaction.
The pair EUR/USD it spent the Asian session fluctuating in a relatively tight range near 1.2120, but was under heavy downward pressure in the early trading hours of the European session. After falling below 1.2100, the pair struggled to make a significant rebound and touched its lowest level in five days at 1.2064. At time of writing, the EUR / USD was down 0.55% on the day at 1.2069.
USD valuation drives EUR / USD movements
Hours earlier, data released by Eurostat showed that the unemployment rate in the euro zone was unchanged at 8.3% in December as expected. Additionally, IHS Markit’s Manufacturing PMI stood at 54.8 in January’s final reading, slightly better than the preliminary estimate of 54.7.
This data was largely ignored by market participants and major European stock indices posted strong gains at the start of the week. However, the shared currency was unable to capitalize on the market optimism and the general strength of the USD caused the EUR / USD to turn south.
The US Dollar Index is currently at its highest level in more than a month at 90.97, rising 0.43% on the day. Data from the US revealed that business activity in the manufacturing sector continued to expand at a strong pace in January.
Later in the day, investors will pay close attention to the headlines coming out of US President Joe Biden’s meeting with Republican senators to discuss the $ 600 billion coronavirus relief bill.
Technical Levels
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