- The DXY rises modestly at the start of the week
- EUR / USD remains below the 20-day average.
The EUR / USD fell during the European session to 1.2144 but quickly returned above 1.2150. ANDIt is trading around 1.2160, moving in a small range below 20 days for hours.
The limited runs are dominating on Monday favoring the EUR / USD to remain calm, trading just below Friday’s close. Despite the strong rebound at the close of the week, the pair remains below the 20-day moving average, which is passing 1.2175. A return clearly above it would point to a stronger euro.
The Market starts the week following Friday’s US employment report that was below expectations, generating a decline in the dollar. Today there will be no impact data and the most relevant this week will be the US inflation figures and the meeting of the European Central Bank (ECB) on Thursday. The DXY rises marginally and stands at 90.15, after having approached 90.30 hours ago.
“We believe that the history of fundamentals favors the dollar, but there is a lot of ground to recover in the coming days. Until we see a major movement in US interest rates (both real and nominal), the greenback is likely to be vulnerable to selling rounds, “say Brown Brothers Harriman analysts.
Technical levels
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